NEPRA reserves decision on Rs4.15 per unit hike for hydel power stations

Earlier WAPDA had requested to increase the power tariff of its 21 power stations for FY 2022-23

Islamabad: The National Electric Power Regulatory Authority (NEPRA) on Thursday reserved its decision over the petition of WAPDA Hydroelectric for determination of power tariff for the financial year 2022-23.  

As per details, NEPRA has conducted a hearing regarding bulk supply tariff petition filed by WAPDA Hydroelectric for FY 2022-23. The hearing was held under NEPRA chairman Tauseef H. Farooqi while NEPRA members Rafique Ahmed Shaikh and Maqsood Anwar were in attendance.

According to the NEPRA, WAPDA has requested to increase the power tariff of its 21 power stations by Rs4.15 per unit for FY 2022-23 which was earlier fixed at Rs3.68 per unit for FY 2021-22. NEPRA on Thursday completed its hearing on the tariff petition of WAPDA Hydroelectric for FY 2022-23, however NEPRA has reserved its decision which will be issued after scrutiny of the data.  

Earlier, WAPDA requested NEPRA for determination of revenue requirements of Rs121.808 billion for the ongoing fiscal year (FY 2022-23), which is 20 percent higher than the NEPRA’s determined revenue requirements of Rs101.382 billion for the FY 2021-22.

During NEPRA’s hearing on bulk supply tariff petition filed by WAPDA Hydroelectric for FY 2022-23, following questions were discussed in detail:

  1. Whether Petitioner’s request for allowance of O&M expense amounting to Rs23, 616 million is justified?
  2. Whether Petitioner’s request for allowance of depreciation charge amounting to Rs8,025 million is justified?. Whether Petitioner’s request for allowance of WACC based return on power stations amounting to Rs30,385 million  justified?
  3. Whether Petitioner’s request for allowance of WACC based return on investment on power projects amounting to Rs34,265 million justified?
  4. Whether other income claimed to be Rs767 million justified?
  5. Whether Petitioner’s request for allowance of Regulatory Gap amounting to Rs26,285 million justified?
  6. Whether the Petitioner’s request for payment of NHP at the uniform rate of Rs1.10 per kWh justified?
  7. Whether WUC, at par with NHP paid to provinces at Rs.1.10 per kWh, for Mangla HPP, NJ HPP and any other future public sector projects of AJK  justified?
  8. Whether PPRA guidelines/rules were followed during procurement of goods/services under the project/plants?
  9. Whether the claims under Tariff Petition are eligible payments i.e. as per approved PCI/approved contracts and government policies in vogue?
  10. Whether it is justified to consider higher tariff for small hydel plants being inefficient and with low plant factor?
  11. Whether it is justified to consider capacity payment/hydrology risk for the plant for which full water discharge is otherwise available but the available water cannot be utilized due to delay in maintenance/design issues?
  12. Whether the actual generation for FY 2021-22 and projected generation for FY 2022-23  justified?
  13. Whether the expected annual generation, and other technical parameters, claimed cost and construction period for ongoing development projects under CWIP are justified?

It may be noted that earlier for revenue requirement NEPRA was informed that O&M expenses have been increased from Rs17.622 billion for FY 2021-22 to Rs23.616 billion during the ongoing fiscal year.

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Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected]

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