Nepra clears use-of-system charges for competitive power market

Dawn reported that Nepra, the national power regulator, notified uniform use-of-system charges on Friday, with rates between Rs6.23 and Rs19.62 per unit. The charges apply to bulk power consumers of all distribution companies, including K-Electric, that take part in the competitive power trading market. Open-access buyers in the upcoming 400MW auction will pay these rates to move electricity across the national grid from supplier to consumer.

The rates cover transmission and distribution costs, a fixed grid charge and a cross-subsidy element, and they sit on top of the electricity price agreed between a private supplier and the buyer. Under the B-3 industrial category the charge is Rs6.23 per unit, compared with Rs9.09 per unit for B-4. Buyers that do not take part in the auction face much higher rates, from Rs19.17 to Rs32.56 per unit.

The Independent System Operation (Ismo) is expected to hold the first 400MW auction within a couple of months, out of 800MW allocated in two phases. The auction had been pushed back because the charges were still undetermined, and the notification is meant to let the wholesale market go live.