ISLAMABAD : The National Grid Company (NGC) erstwhile NTDC, has sought an increase of about 86 per cent in its Use of System Charges (UoSC) from 2022-23 to 2024-25 either on coincidental basis or non-coincidental basis as per its total revenue requirement of Rs 485.392 billion in three years.
Of total revenue requirement of Rs 485.395 billion for three years, Rs 112.389 billion has been sought for FY 2022-23, Rs 163.455 billion for FY 2023-24 and Rs 209.548 billion in 2024-25. The Company’s top projects’ management is grilled by the Parliamentary oversight Panels for massive mismanagement and corruption in projects funded by the development partners.
Mr. Taqiuddin, former Chief Engineer (Design), who has recently been promoted to General Manager Design and HR. There are credible allegations of misconduct, misuse of authority, and irregular practices associated with his previous tenure. During a recent inquiry conducted by one of NGC General Managers and two Chief Engineers, it was found that the approved criteria had been fraudulently altered and subsequently issued in order to favour a particular manufacturer
It is widely perceived that he lacks the necessary competence and integrity to hold senior leadership roles. Reports suggest that under his influence, the system at NTDC is being manipulated in favor of a few select contractors, raising concerns of corruption and mismanagement.
The tariff petition says that after including less income of (Rs 5.216 billion) in 2022-23, (Rs 6.863 billion) in FY 2023-24 and (Rs 7.011 billion) in 2024-25, NGC has slashed its revenue requirement of Rs 112.389 billion for 2022-23, Rs 163.455 billion in 2023-24 and Rs 209.548 billion for FY 2024-25.
According to the tariff petition submitted to National Electric Power Regulatory Authority (NEPRA), NGC has requested for an increase of 24.8 per cent ( coincidental) to Rs 885.07 Kw/ month for three years ( from 2022-23 to 2024-25 from existing from Rs 712.49 Kw/month whereas the requested increase in non-coincidental charges is 24 per cent to Rs 667.03/Kw/ month from Rs 538.66/ kW/ month.
For G.E&A, NGC has proposed Rs 18.097 billion for 2022-23, Rs 24.330 billion for 2023-24 and Rs 24.961 for 2024-25. R&M- Rs 1.555 billion for 2022-23, Rs 1.831 billion for 2023-24 and Rs 2.373 billion for 2024-25. Insurance – Rs 305 million for 2022-23, Rs 344 million for FY 2023-24 and Rs 378 million for 2024-25.
The Company has sought compensation Rs 15.309 billion on account of Rupee depreciation in 2022-23, Rs 16.367 billion 2023-24 and Rs 18.668 billion in 2024-25. Financial charges- Rs 16.021 billion in 2022-23, Rs 19.697 billion 2023-24 and Rs 20.661 billion in 2024-25. Prior Year Adjustment (PYA), Rs 9.450 billion in 2022-23, Rs 38.528 billion in 2023-24 and Rs 92.774 billion on 2024-25. Corporate Tax, Rs 3.245 billion FY 2022-23 and Rs 2.016 billion in 2023-24. However, the amount for the FY 2024-25 is likely to be shared during the public hearing.
Pension fund contribution – Rs 3.838 billion in FY 2022-23, Rs 4.916 billion in 2023-24 and Rs 6.146 billion 2024-25. Exchange loss / ( gain) Rs 2.428 billion in FY 2022, Rs ( 892 million) in 2023-24 and Rs 972 million 2024-25.
According to the tariff petition, NGC has sought Return of Rs 47.312 billion in FY 2022-23, Rs 63.181 billion in 2023-24 and Rs 49.625 billion in 2024-25. For MDI( non-coincidental -Kw, an amount of Rs 26.158 billion has been proposed for FY 2022-23, followed by Rs 25.287 billion for 2023-24 and Rs 26.179 billion for FY 2024-25.
For Use of System Charges (UoSC) ( non-coincidental ) Rs 358.04 million in FY 2022-23/ Kw/month, Rs 538.66 million/kW/ month in FY 2023-24 and Rs 667.03 million /Kw/month in FY 2024-25.
NGC has also sought Rs 19.589 billion for FY 2022-23, Rs 19.118 billion in FY 2023-24 and Rs 19.641 billion / Kw in 2024-25 . The Company has also proposed UoSC rate ( coincidental) Rs 478.12 million in FY 2022-23, Rs 712.49 million in FY 2023-24 and Rs 889.07 million on FY 2024-25.
According to NEPRA, the petitioner has sought following relief in the tariff petition; (i) proposed Tariff (UoSC) be granted either on co-incidental basis or non-coincidental basis ;(ii) allow claim for the recovery of all legitimate costs incurred prudently during FY 2022-23, FY 2023-24 & FY 2024-25 in accordance with NEPRA Standard and Guidelines 17 (3)(i) to run the business ;(iii) allow cost of debt in light of the GoP relent policies of the respective loans along with reasonable spread ;(iv) true-up the Transmission Investment Plan FY 2023-25 according to the actual expenditure incurred by NGC ;(v) approve the proposed mechanism for ISMO to ensure smooth transition and operational efficiency ;(vi) continue /retain the existing payment mechanism of PMLTC invoices and direct CPPA-G to ensure timely/prompt payments ; and (vii) allow T&T losses on as per actual basis and the assessment may be finalized based upon the outcome of independent consultant study on NGC T&T losses.
NEPRA has sought comments on the tariff petition of NGC within seven days so that these can be made part of the discussion on the day of public hearing.
Ends
