ISLAMABAD : National Electric Power Regulatory Authority (NEPRA) is reportedly in trouble for ” unjustified’ revision in tariff of Lucky Electric Power Company (Private) Limited (LEPCL), as revised tariff has been withheld after intervention from the quarters, already dealing with IPPs pacts, well informed sources told Business Recorder.
This aspect is also very clear in NEPRA’s decision on fuel price adjustment of LEPCL for the month of October 2024.
According to the decision, pursuant to the decision of the Authority of October 20, 2016 notified on September 15.2017 in the matter of approval of upfront coal tariff for coal power plant of Lucky Electric Power Company (Private) Limited, decision of September 23,2016 regarding Sue Moto Review Proceedings in the Fuel Price Adjustment Mechanism determined in Upfront Coal Tariff, decision of February 7, 2022 in the matter of procurement of imported coal using ICI-5 Index and decision of the Authority of June 4, 2024 regarding Motions for Leave for Review against decisions of the Authority in the matter of fuel price adjustment for the months of March 2022 onwards, the fuel portion of the energy charge part of LEPCL’s tariff required to be adjusted on account of fuel price variation. LEPCL requested weighted average coal price of Rs 17,835/Ton for coal consumed during the month of October 2024. LEPCL requested Fuel Cost Component (FCC) of Rs. 14.2087/ kWh for October 22024.
The Authority says that in its collective and joint wisdom considering ail aspects decided with consensus as under which shall be hereafter called as decision of the Authority in the matter:
“Based on the documentary’ evidence and information submitted by LEPCL the fuel cost component for the month of October 2024 of energy charge Part of LEPCL’s tariff has been adjusted for variation in coal price(s)) In accordance with the prescribed mechanism, the revised coal price for each shipment have been worked,”.
The revised fuel cost component of energy charge part of LEPCL’s tariff shall be immediately applicable to units delivered during the month i.e. Rs 12.4553 per unit in October 2024 from Rs 3.9768 per unit of October 2016.
The Authority, in its decision is also of the view that LEPCL also consumed Thar coal in the current month from the stock purchased Engro Coal Mining Company Limited (SECMC) which charged to LEPCL of $ 40.14/ton coal price of first year TCEB determined contract stage tariff of Phase-III of Thar Coal Block-II. This price is translated to Rs. 14,159/ton for coal purchased in September 2024 and Rs. 13.562/ton for the purchases in October 2024, along with other incidental charges such as insurance, freight etc.
Thar Coal Energy Board (TCEB) in the decision of November 17, 2023 in the matter of Motion for Leave for Review of Contract Stage Tariff of July 25, 2023 for 11.2 MPTA Capacity (Phase III) at Block-II, accepted SECMC’s request to recognize sales made to LEPCL after February 17, 2023, as Pre-COD of Phase III and allowing the coal to be sold at the first year tariff. Based on this TCEB decision, LEPCL has submitted request to the Authority for revision of its FCCs for the month of May 2023 and June 2023 on the basis of full tariff which was previously allowed on the basis variable coal price.
NEPRA is of the view that the request of LEPCL is currently under consideration of the Authority and once the Authority decided the matter the decision shall be communicated to LEPCL, adding that since the Authority is not decided for the applicability of coal price for post February 17, 2023, therefore, the Thar coal purchases of September 2024 and October 2024 are also being assessed on the basis of TCEB determined variable coal price of$ 17.91/ton in line with previous decisions of the Authority. The current month FCC shall be subject to adjustment, if required, on the basis of final decision of the Authority for the applicability of coal price for post February 17, 2023 Thar coal prices.
Ends
