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The failure of NTDC will Cost Consumers Rs 80 Billion

The failure of the NTDC to lay transmission lines for the Thar coal-based power plants has raised concerns about potential consumer burdens.

The National Transmission & Despatch Company (NTDC) is being criticised once more for failing to construct transmission lines to evacuate electricity from the Thar coal-based power plants, which could potentially cost consumers up to Rs80 billion.

Despite the decrease in electricity rates for February 2023, power distribution companies (Discos) customers may still pay higher rates as a result of prior adjustments totaling Rs6.3 billion brought on by system limitations. The price per unit could rise by Rs0.85 if permitted.

Due to its failure to evacuate power from Thar coal-based power plants, NTDC requested an adjustment of Rs6.7 billion during a public hearing held by the National Electric Power Regulatory Authority (NEPRA).

Given the timelines of the Thar coal-based power plants, this sparked serious concerns from NEPRA, which questioned why proper planning and due diligence were not conducted by NTDC to lay the transmission lines.

The hearing made clear that the nation will need more electricity generation because the demand for electricity is anticipated to rise during the summer.

Two transmission lines were already in place to evacuate 1400 MW of electricity, according to NTDC officials, and two more lines are scheduled to go into service in April to evacuate 2400 MW of electricity from Thar coal-based plants.

The February monthly fuel charges adjustment of DISCOs was the subject of a public hearing held by NEPRA, presided over by Taseef H. Farooqui, chairman of the organisation.

CPPAG had requested an increase of 85 paisa per unit due to a fuel adjustment for the month of February 2023.

NEPRA claims that the reduction, based on a preliminary analysis of the data, amounts to 0.0006 per unit. If NTDC is able to convince the authority that the adjustment is necessary, the tariff could rise by up to 85 paisa per unit.

All DISCO customers will be subject to this increase for a single month, with the exception of lifeline and electric vehicle charging stations. Additionally, customers of K-Electric (KE) will not be affected. After reviewing the information in greater detail, the authority will announce its decision in detail.

An open hearing was held at the Nepra headquarters regarding KE’s request for a fuel cost charge adjustment for February. Under Fuel Cost Adjustment, KE had requested an increase of Rs1.66 per unit (FCA).

Nepra’s data indicate that the FCA for February increased from Rs0.56 to Rs1.7 per unit; the exact amount will be announced at a later time.

All KE customers will be subject to this increase for one month only, with the exception of lifeline and electric vehicle charging stations. After reviewing the information in greater detail, the authority will announce its decision in detail.

Written by Imad Khan

Imad Khan has the skills and experience to deliver top-notch content that informs, engages, and inspires. He oftens explores nature in his free time.