ISLAMABAD, July 1: The National Electric Power Regulatory Authority (Nepra) has allowed 15 per cent and eight per cent increase in fixed and variable tariffs respectively in Wapda’s hydropower units with immediate effect.
Wapda Hydel through a petition had sought an increase of more than 23 per cent in both components of the tariff for bulk sale to the Central Power Purchasing Agency (CPPA) that was rejected by Nepra. Commercial and industrial associations such as APTMA, FPCCI and KCCI had opposed the tariff increase and demanded improved service and efficiency in the electricity system.
Wapda Hydel would now charge the CPPA a fixed rate of Rs265.96 per kW per month instead of Rs231.59 as capacity payment, up by 14.84 per cent or Rs34.37 per kW per month. It would also charge 30.87 paisa per unit (kWh) instead of 28.63 paisa, which was an increase of 7.8 per cent or 2.24 paisa per unit.
The CPPA procures electricity from Wapda’s hydel and thermal entities and then sells it to consumers through various distribution companies.
With an installed capacity of about 6,444MW, Wapda Hydel accounts for almost 57 per cent of Wapda’s 11,363MW total capacity.
Separately, Nepra also increased the capacity purchase tariff of Central Power Generation Company Limited (CPGCL) and Northern Power Generation Company Limited (NGPCL) - both thermal companies of Wapda - by about four per cent and two per cent respectively with immediate effect.
Nepra, however, rejected Wapda’s request seeking blanket indexation mechanism by the utility itself, instead of annual reviews by the regulator.
These increases would form part of the consumer tariff when the government takes a decision to revise the rates for distribution companies. More importantly, the net hydel payments to the NWFP for the year 2007-08 had been approved by Nepra at existing Rs6 billion mark as an interim arrangement, notwithstanding Rs75 billion demanded by the province under an award of the independent arbitral tribunal.
Since the case was pending before the Supreme Court of Pakistan, Nepra held that a revised tariff would be required on the basis of NWFP’s demand when a final decision of the apex court would be available.
Nepra also decided to appoint an independent auditor to examine the different financing instruments of Wapda.
The regulator approved 10 per cent rate of inflation for the fiscal year 2008 against government’s next year inflation target of 6.5 per cent. It approved 15 per cent rise in salaries as part of operational and maintenance cost.
