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NTDC calls for 61pc tariff increase in use of system charges

The National Transmission and Dispatch Company (NTDC) has submitted an application to the National Electric Power Regulatory Authority (Nepra), demanding a 61.29 percent tariff increase in the use of system charges over last year.

According to the NTDC petition, in order to seek a 14.66 percent return on equity, keeping in view Nepra’s determination for power sector companies as well as the prevalent marketing trends, a 61.29 percent increase in use of system charges to Rs138.56 kW per month is imperative.

NTDC submitted that general establishment expenditure, due to adhoc and other reliefs announced by the government in the budget for FY2012-13, was calculated at Rs5.502 billion for FY2012-13 against Rs4.309 billion in FY2011-12.

Besides, induction of new employees has also been planned for the envisaged expansion in the transmission network of NTDC.

Moreover, to ensure the desired reliability, security and adequacy of the transmission network and maintain and strengthen the transmission system to optimum level, the repair and maintenance cost has been calculated around Rs939 million in FY2012-13 as against Rs658 million in FY2011-12.

An extra cost is also being incurred to rehabilitate the system from terrorist and sabotage activities.

The financial charges of the company are also to increase to Rs5.124 billion from Rs3.586 billion due to increase in borrowing for the capacity expansion programme.

NTDC submitted that the financial burden of transmission losses beyond 2.5 percent, approved by the authority, was swallowing the average Rs3.0 billion per year.

Therefore, to meet the net revenue requirement of Rs28.705 billion in line with Nepra determination, the NTDC seeks increase in use of system charges.

The NTDC was incorporated on November 06, 1998, and commenced commercial operation on December 24, 1998. It was organised to take over all the properties, rights and assets, obligations and liabilities of 220 KV and 500KV grid stations and transmission lines/network owned by the Water and Power Development Authority (Wapda).

The NTDC operates and maintains twelve 500 KV and twenty nine 220 KV grid stations, 5,077 km of 500 KV transmission line and 7,359 km of 220 KV transmission line in Pakistan.

It was granted Transmission Licence No.TL/01//2002 on December 31, 2002, by Nepra to engage in the exclusive transmission business for thirty years, in line with Section 17 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.

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