The National Electric Power Regulatory Authority (NEPRA) has allowed Central Power Purchasing Agency (CPPA) to recover arrears of Rs 11.1 billion under the Gas Infrastructure Development Cess (GIDC) for the period January 01, 2013, to April 2015, through fuel price adjustment mechanism.
According to the decision, the CPPA will adjust arrears of GIDC through the fuel price adjustment (FPA) in future. The NEPRA observed that since no change in gas price and GIDC for Independent Power Producers (IPPs) was made during January 01, 2013, to April 2015 period, therefore the already determined fuel cost component will be applicable. The government has imposed a GIDC of Rs 100 per MMBtu on IPPs.
The NEPRA had heard the IPPs on June 18, during which they said the sui gas companies were demanding payment of arrears of GIDC in bulk for the period January 2013-April 2015. The IPPs were of the opinion that they sold the electricity to CPPA and did not charge GIDC from it. They could only pay back if CPPA recovers it from the final consumer.
It was highlighted to NEPRA that the GIDC Act 2015 has given exemption to industrial sector from payment of arrears. However, the regulator decided that the CPPA will adjust arrears of GIDC through the FPA in future.
It is important to mention that the NEPRA hearing was attended by the representatives of IPPs but no representative from the SNGPL and SSGC, ministry of finance and ministry of water and power attended the hearing, the decision said.