Water and Power Development Authority (Wapda) has sought a 92 percent increase in hydel tariff from Rs 1.88 per unit in 2015-16 to Rs 3.61 per unit in 2017-18. Wapda has submitted a tariff petition to National Electric Power Regulatory Authority (Nepra) for the revision of tariff for 2017-18 for bulk supply of power to hydel power stations. Wapda has to pay Rs 121.275 billion to Khyber Pakhtunkhwa (KP), Punjab, AJ&K as Water Usage Charges (UWC) and regular hydel levies.
According to the petition filed by Wapda”s annual revenue requirement is as follows: (i) O&M cost Rs 14.542 billion in 2017-18 against Rs 11 billion in 2-15-16; (ii) depreciation at carrying cost, Rs 5.951 billion;(iii) Ijara rental ( Sukuk Bonds repayments) Rs 2.589 billion;(iv) Return on Investment (RoI)- power stations Rs 37.838 billion;(v) RoI-power projects, Rs 31.472 billion and ; (vi) other Rs 300 million. The revenue has been calculated at Rs 92.093 billion and after adding up of Rs 32.049 billion of regulatory revenue gap, total revenue gap would be widened to Rs 124.142 billion in 2017-18 as compared to Rs 68.987 billion in 2015-16, showing an increase of 84.2 per cent.
Wapda”s estimated generation in 2017-18 will be 33,598 kWh against 31,752 kWh showing a growth of 5.8 per cent. The average cost of generation without gap would be Rs 2.74 per unit in 2017-18 as compared to Rs 1.80 per unit. However, average cost of generation with gap has been calculated at Rs 3.69 per unit during next fiscal year as compared to Rs 2.17 per unit in 2015-16.
The projections calculated by Wapda also suggest that cost plus levies margin of KP would be Rs 20.786 billion in 2017-18 against Rs 18.704 billion, Punjab Rs 9.526 billion in 2017-18 against zero per cent in 2015-16, AJ&K Rs 2.547 billion in 2017-18 against Rs 899 million in 2015-16 and Irsa Rs 168 million against Rs 159, totalling it to Rs 33.027 billion in 2017-18 as compared to Rs 19.762 billion, showing an increase of 67 per cent.
Wapda has also to pay arrears of Net Hydel Profit to provinces. Wapda would pay Rs 1.444 billion as interest on loan raised from banks, Rs 25 billion paid to KP as NHP whereas Rs 9.298 billion would be paid for 2015-16 and Rs 15 billion in 2017-18 totaling Rs 25.742 billion.
Wapda would pay Rs 62.506 billion to Punjab of which Rs 9.526 billion in 2016-17 whereas Rs 38.120 billion and Rs 14.860 billion will be paid in two instalments totalling to Rs 62.506 billion . Total arrears of NPH have been calculated at Rs 88.248 billion in 2017-18 and with addition of hydel levies ( regular plus arrears) it would be Rs 121.275 billion. Nepra has admitted a tariff petition of Wapda hydroelectric of bulk supply tariff of power to NTDC/ CPPA-G for 2017-18 for hearing and sought comments from the stakeholders.