ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has reportedly blamed Ministry of Energy for passing “unjustified” financial burden of Rs30 billion to consumers by not supplying required RLNG or operating of inefficient/expensive power plants during the past two years, revealed Business Recorder.
The power regulator has reportedly sent a letter to Secretary Power Division drawing their attention toward the shortage of RLNG supply to the power sector over the last two years and the resulting financial impact due to operation of expensive power plants, the report said.
Nepra keeps a close eye on any deviations from the Economic Merit Order (EMO) that take place when dispatching power plants.
According to the report, Nepra noted in its letter that it was found during examination on several occasions that some RLNG power plants are unable to produce energy to their full potential due to a lack of RLNG supplies. As a result, less meritorious power facilities that are more expensive and inefficient than RLNG plants are used to meet the system demand. The end-user tariff ultimately rises as a result of the net increase in generation costs for a particular month.
The operating of costly/inefficient power plants as a result of the RLNG scarcity over the course of the previous two years is estimated to have cost Rs30 billion. The Authority views this cost as adding to the burden on energy consumers even if it has been passed on to them through the appropriate FCAs. Thus, a speedy settlement of the problem will be advantageous for the country as a whole and for electricity consumers in particular.
