FESCO Amended Net Metering SOP February, 2024 O|PageTable of Contents: B G H PROCESS OF APPLICATIO! SOME IMPORTANT PRE-REQUISITE! BILLING & PAYMENT PROCEDURE. DISTRIBUTED GENERATION FACILITY DESIGN AND OPERATING REQUIREMENT! PROTECTION AGAINST INJE! ¢ ‘TION OF LOWER TARIFF POWER AND ERATION OTHER THAN SOLAR / WIND. EXPORT / IMPORT BILLING AND BACKUP METERS ENERGIZATION / SYNCHRONIZATION OF DG FACILITY L INSPECTIONS: ‘TERMS OF AGREEMENT...FESCO Amended Net Metering SOP LIST OF DOCUMENTS & ANNEXURES TO BE ATTACHED WITH APPLICATION. Schedule/Appendix/Annexure_ - = No. Agreement between Distributed Generator & Distribution ol Schedule-t | Company | 02. | Application Form oo a Sonate lie j is “03. | Application for grant of License from NEPRA ae ‘Schedule-Iil on 04. ‘Application for exemption from Section 24 of NEPRA Act Schedule-IV | | — ae - 05. | Fee Schedule Schedule-V : Affidavit . a Schedule-VI _ | Generation License Template’ ‘Schedule-VIT_| “Appendix-B ie ¢ purpose | Appendix | i 12. | Check list for DG’s Grid Safety Qualification “Appendix-D | isee | Net Metering Approval Proforma for DG facility up to 25 KW ‘Annex-A | [ a jaim Form w.tt excess units sold by a consumer into FESCO | networkFESCO Amended Net Metering SOP A. PROCESS OF APPLICATION 1. Summary Alternative & Renewable Energy (ARE)-IPPs within the context of ARE Policy 2011 are ARE based power generation companies for dedicate sale of power under granted ‘Agreement with NTDC/ CPPA / FESCO, similarly consumer based ARE Distributed Generator (ARE-DG) up to 01 MW has an option to sell full or part of generated electricity to the grid, under this mechanism utility consumers are encouraged to generate their own electricity from ARE resources. ARE (DG) produce power for self-use and for sale to bulk consumers / FESCOs under bilateral contracts as per ARE Policy 2011 (seetion 2.1 & 4.4.3.1 of policy). Net metering, therefore shall be allowed only to those consumers who have surplus energy to sell. The load of the proposed solar/wind plant will be from 0SKW up to the sanctioned load of the Distributed Generator or the DG facility shall not be greater 1.5 times capacity of sanctioned load, The Distributor Generator as per Net Metering Regulation-2015, has an option to sell full or part of the generated electricity to the grid through Net Metering, 2. Any consumer (as per definition of “Applicant” vide SRO No.892 dated 01.09.2015, SRO No, 1025(1)/2017 dated 10.10.2017 and SRO No. 1135(1)/2018 dated 13.09.2018) having 3 phase 400V or 11 KV domestic, commercial, industrial, Agricultural, General Services consumer or a Single Point Bulk Supply consumer can submit an application for net metering against his installed or intending to install a solariwind power plant for 05 KW to 01 MW depending upon his premises load. 3. Applications can be downloaded from FESCO website www fesco.com.pk. 4, Consumer is required to submit his application in FESCO’s office as detailed below with necessary documents as specified in schedule-II of Net Metering Regulations-2015 For Load 05 KW up to 15 KW (AL, A2 & A3) SDO (Operation) For Load trom 16K W up to 70 KW (All other types of Connections) XEN (Operation) For Load from 71K W up to SOOKW SE (Operation) For Load above 501 KW up to 01 MW Chief Engineer (P&D) 5. If sanctioned load is more than the DG Facility Load then load sanctioning authority of connection will process the case. 6, In case of any missing inform ion of documents, the applicant shall provide the same to the concerned ESCO’s office within five (05) working days of being informed by the office 7. After being satisfied that application is complete in all respect the FESCO technical committee as given below shall perform an initial review to determine whether the applicant qualifies for interconnection facility, or may qualify subject to additional requirements. The initial review shall be completed within three (03) working days by the below mentioned committee. 3|Page prewFrom 05 KW up to 25 KW From 26 KW up to SOOKW From 501 KW to 01 MW FESCO Amended Net Metering SOP ‘Technical Committee XEN (Operation), SOO (Operation) & LS Concemed. XEN (Operation), XEN (M&T) & SDO (Operation) ‘SE (Operation), SE (M&'T) & XEN (Operation) 8. In case the capacity variation of inverter is more than 05 KW as compared with the DG Facility load then concerned technical committee will decide the case. 9% In initial review reveals that the proposed facility is not technically feasible, the application will be returned to the applicant along with reasons within three (03) working days after completion of initial review. 10. If the Technical committee is satisfied that the applicant qualifies as Distributed Generator, then FSCO and the Applicant shall enter into an Agreement within two (02) working days as per approved format of Schedule-I of Regulations. This also include all terms and conditions laid down in this SOP of FESCO. FE: .greement shall CO SOP will be incorporated in the approved format of Agreement by adding a sentence that “SOP of FESCO will be considered as part of this Agreement” as sub para “I in para “II” of the format Agreement. Agreement signing authority and witness thereof will be as under, Sr No, [Signature of Agreement from FESCO side | Witnessed by 1 |ChioF engineer Pay SE (Operation) (Operation) Dy. Dir. Pla XEN (OP) & SDO (OP) | SDO (OP) & LS Concemed. ~_[SDO Operation) LS (Con) & LS (D&R) 11. After signing of the Agreement, the concerned FESCO office shall send a copy of the Agreement to the NEPRA Authority within three (03) working days of the signing of the Agreement and shall forwarded the Application to the Authority (NEPRA) for grant of license as specified in Schedule-111 along with following documents, a. Agreement (Schedule-1) b. Application for exemption from the requirement of section 24 of the Act as specified in Schedule-IV, Receipt of payment of deposit of fee as specified in Schedule-V by the Authority, a. Affidavit by Distributed Generator as specified in Schedule-VI. 12. Up to 25 KW, the requirement of Generation License had been exempted vide NEPRA letter No, NEPRA/DG (Licensing)/LAN/100/40976 dated 19.11.2021. Hence, Technical Committee mentioned in para- 6(i) will issue the “Net-Metering approval” letter along Net Metering Annex-A & Appendix-A). chnical Feasibility Report and make part of the agreement (attach asFESCO Amended Net Metering SOP 13, Within five (05) working days of execution of the Agreement, the concerned FESCO office shall issue NOC (In case of non-availability of green meter in FESCO stores) and the demand notice of estimate of the connection charges (as per this FESCO SOP) to the applicant for the proposed interconnection facility up to the interconnection point including the metering installation if the equipment for interconnection installation including metering system are available in FESCO store otherwise Distributor Generator (DG) will be responsible to provide the specified material to FESCO. 14. The applicant shall make the payment of demand notice issued to him on account of estimate for connection charges and meter be provided within fifteen (15) days of its issuance of demand notice & NOC. 15. The Technical Committee mentioned in para-6 above shall install and commission the Proposed interconnection facility within four (04) days of the payment of demand notice by the Applicant, provided that the net metering arrangement shall commence upon grant of License or otherwise to the Distributed Generator in accordance with Regulation 4 of these Regulations, B. SOME IMPORTANT PRE-REQUISITE! 1. Submission of load flow study (on PSSE software) will be compulsory for all Distributed Generators having sanctioned load / capacity of more than 500 KW. 2. Distributed Generator, having sanctioned load / capacity from 251 KW to S00 KW, may submit load flow study on FDORANA software and load flow submitted by the applicant shall be vetted by Operation Division / Circle concerned. The Load flow study for the facility having capacity up to 250 KW is not required. 3. When the accumulative capacity of (already allowed) Distributed Generators become 80% of loading capacity of installed distribution/independent transformer, the Agreements with new Distributor Generator will be signed subject to the augmentation of existing distribution transformer on cost deposit basis by the new Distributed Generator. 4 The Distributed Generators being fed from distribution transformers are absolved from load flow study Manufacture's test certificate of each electrical equipment / component including PV module and the invertors shall be provided by Distributed Generator. 6 FESCO shall has the right to test the DG Facility and ensure that DG facility fulfills the safety/quality standards in accordance with SOPs developed by Ministry of Energy for approvaliinstallation of net_metering application/connection/s requirement provided in the relevant law as the case may be. C. BILLING & PAYMENT PROCEDUR! BREENG & PAYMENT PROCEDURE. stem or any other Pursuant to Clause-14 “Billing for Net Metering” of the Alternative and Renewable Pnergy Distributed Generation and Net Metering Regulation 2015 as amended upto date ie 5|Page yiFESCO Amended Net Metering SOP for implementing net metering policy, following procedure is hereby proposed to be adopted; ‘The consumer shall receive a monthly net import/export bill indicating either net export to the grid or net import from the grid. The meter reader has to capture import & export energy and other billing parameters recorded by the bi-directional meter. Meter reading should be carried out preferably through automated (Smart metering) means as directed by NEPRA from time to time or through handheld unit/Mobile by the ‘meter readers as per Consumer Service Manual (CSM-2021) issued by NEPRA, [- Designation [Load From 05 KW to 20 KW —_| Above 20 KW to 40 KW Above 40K W to Tess than 500KW [500 KWtoolMW i) The meter reading of Distributed Generator will be carried out by the designated officers / officials stated above as per performa to be designed by department mentioning therein the reason of only export unit without any import, import units only without any export units and reason of export units in Peak Hours, Such Practice will facilitate to decide the extension/injection of illegal power other than agreed capacity, at the same time, will reflect the status of generation facility i. out of order of otherwise Designated officers / officials will also record on the reading performa_a certificate that all the pasted security slips are intact and Distributed Generator is not injecting any illegal generation/managed power into the system. Illegal generation/managed power means recycling of power received from FESCO at lower tariff or generated other than solar/wind iii) Any such irregularity will be brought into the notice of the Competent Authority who will take-up the matter with NEPRA as well as, depending upon the gravity of illegal act, deferred the net-metering purchased and payment due after quarterly adjustment. If there are two different tariffs running in the same premises of the wind / solar Distributed Generator, then sale of energy will be on lower tariff by Distributor Generator. The kWh export by a Distributed Generator during peak hours shall be net off against the kWh import from FESCO during peak hours and the KWh export by a Distributed Generator during off peak hours shall be net off against the kWh import from FESCO during off peak hours, In case of net import bill, the Distributed Generator shall be billed for the net kWh in accordance with the consumer end applicable tariff of FESCO,10, a) ° 8) hy “ESCO Amended Net Metering SOP {n case, the kWh export by Distributed Generator in off peaks hours exceeds the kWh. import from FESCO in off peak hours, the net kWh shall be credited against Distributed Generator’s next billing cycle for future consumption, or shall be paid by the FESCO to the Applicant / Distributed Generator on quarterly ba "he price payabie by PESCO on net off peak hours export kWh to Distributed Generator shall be the national average power purchase price of FESCO as determined by NEPRA and notified by the Federal Government, The other rates such as variable charges for peak lime, fixed charges, fuel price adjustment, duties / levies etc will nct be payable by the FESCO, The following procedure will be followed for the payment of excess exported units to the Distributed Generator / Applicant by the FESCO. The Distributed Generator will submit their consent / application for payment of excess exported units to any of concerned Executive Engineer (Operation) / Revenue Officer along with attested copies of following documents: - DE CNC’ ii) Invoice (as per prescribed format). ii) Valid Generation License (if applicable). iii) Copy of Agreement. iv) _ Original Electricity bill issued at the quarter end. the Distributed Generator should be a registered person with FBR having valid NTN and GST Number. The Distributed Generator claim shall subject to all type of applicable if any, tatus of connection / metering equipment will be verified by the concerned Stan ‘Committee and will issue test check proforma accordingly. Afier receipt of test check proforma, the concemed Revenue Officer will prepare the bill for payment of excess exported units by the Distributed Generator / Applicant as per, “National Average Power Purchase Rate” / NEPRA determined rate for net metering of FESCO, quarterly and seek approval from competent authority the payment will be made to Distributed Generator / Applicant through cross cheque by the concerned Revenue Officer after getting pre-audit of the approved bill from the Chief Financial Officer FESCO and receipt of additional demand from CFO office, The amount Paid and other required information's will be provided to FESCO computer center through CP-139 input form, with sub-transaction “08 Reversal IOT™. Date of cheque will be considered as payment date and a dummy bank code “9300 be filled on CP-139 input form, The FESCO Computer Centre will process the transaction on daily basis and post the amount against consumer balances, A reference wise special list ‘payment to Distributed Generator” will be processed at the end of every billing cycle issuing payment summary file. ‘The same list will also be sent o Chief Financial Officer, Superintending Engineer / Executive Engineer / Revenue On ig will = T|Page oSD. b) ° EFESCO Amended Net Metering SOP i) The payment made to Distributed Generator / Applicant will be booked to the account head titled, “Purchase of Power through Net Metering”. DISTRIBUTED _GENERATIO} FACILITY DESIGN AND OPERATING REQUIREMENTS: Pursuant to Clause-9 “Protection Requirements” of the Altemative and Renewable Energy Distributed Generation and Net. Metering Regulation 2015 for implementing net metering Policy, following protection requirements are hereby proposed to be incorporated in design of the system, Installation Of DG Facility i. ‘The applicant is required to install the DG Facility through Private Power and Infrastructure Board (PPIB) / Alternative Energy Development Board (AEDB) certified vendors / installers (available at PPIB or FESCO web) who has experience in design, supply, installation and commissioning of DG Facility ii, The DG Facility should comply with the relevant IEC technical standards and safety standard / compliance. ti “The specification of solar grid 3Phase inverter preferably shall be UL-1741 however other specifications are attached as (Annex-C) for guidance purpose. iv. LY circuit breaker will have the same specification as approved by Chief Engineer (D&S) NTC. Single Line Diagram: The protection and control diagrams for the interconnection of the Distributed Generator shall be in accordance with Single Line Diagram as proposed at (CC to be approved by the Distribution Company prior to the commissioning of the system. Distributed Generator shall be responsible for installation of all of the equipment and protective devices to be used for the interconnection, Earthing Protection: A minimum of two separate dedicated and interconnected earth electrodes must be used for the carthing of the solar PV system support structure with a total earth resistance not exceeding 5 ‘ohms as below: i, Equipment earth (DC) & ii. System earth (AC) Both equipment earth (DC) and system earth (AC) shall be checked / tested for proper earthing, Equipment earth (DC): All metallic parts of DG Facility such as PV modules, DCDB, generator, iron clad Switches will be connected to earth with two separate and distinct earth connections to Avoid any loss of property or Human being, Farthing shall be done in accordance with Standard Design Instructions to be issued by FESC in consultation with Chief Engincer (D&S) NPDCL. 8|Page YEFESCO Amended Net Metering SOP 4. Surge Protection: Surge protection shall be provided on the DC side and the AC side of the DG facility. The DC surge protection devices (SPDs) shall be installed in the DC distribution box adjacent to the solar grid inverter and generator as approved by Chief Engineer (D&S) NTDC, The AC SPDs shall be installed in the AC distribution box adjacent to the DG facility ‘The SPDs earthing terminal shall be connected to earth through the above mention dedicated earthing system v.The Lightening Arresters need to be provided for the buildings which are of more than 15 meters height. 5. Safety Measures For Maintenance The Distributed Generator shall provide LT Breaker of proper capacity at load side on consumer premises as an interconnection’ facility disconnection switch that will open with the visual break and capable of being locked in open position to enable line man to disconnect the installation so as to provide a safe zone for maintenance works. The switch shall be accessible at all time to the FESCO personnel, however this disconnection switch will be in addition to and separate from the breaker being proposed and operated through reverse power relay as mentioned in para E- (¥). 6. Provision of Relays And 1% An inverter will have an inbuilt AC under / over voltage relay, AC over / under frequency relay and over current / earth fault relay. Anti islanding protections relay which trips the breaker on grid failure and thus prevents any solat/wind power injection to the Grid when there is no power in Grid. These relays shall be tested by the respective officers during service connection and routine inspections. Necessary protection arrangements shall be made when there is no grid supply on single/two/three phases. ‘The inspection authority shall ensure the proper functioning of protection before commissioning. The applicant’s installation shall be disconnected in the event of such exigencies to prevent accident or damage to men and equipment. 7. Work As Per Desiga And Single Line Diagram the installation work has to be carried out as per the approved drawings and as per standards. + Applicant shall notify the FESCO in writing that installation of DG facility is complete as per single line diagram and requirement of the FESCO. i, However, in ease applicant has already installed the DG Facility, he will be bound to modify the installation as per design before his application is processed. E, PROTECTION AGAINST INJECTION OF LOWER TARIFF POWER AND GENERATION OTHER THAN SOLAR / WIND The reverse power relay will be installed immediately before the interconnection point towards the load side as shown in logic diagram for the connection of solar / wind plant (CCT-1 to CCT- 04) The following installation shall be secured and sealed and will be accessible to the authorized representative of FESCO:- 9|Page SSNFESCO Amended Net Metering SOP Solar PV module terminals and cables up to the DC inverter terminal to protect against the injection of the DC power produced other than solar energy. AC output terminals of the inverter and cable up to the interconnection point to protect against the injection of any AC power into the system other than solar / wind energy. Complete circuit including dedicated CT/PT for reverse power relay up to the breaker of export / import metering panel including interconnection point shall be secured and sealed, Reverse power relay and its input / output cables shall also be secured. ‘The main breaker with / before metering panel shall also be scaled and its resetting / closure will be carried out by authorized representative of FESCO ot due to reverse power relay or any unauthorized act. EXPORT / IMPORT BILLING AND BACKUP METERS SAPORT IMPORT BILLING AND BACKUP METERS A single bi-directional service connection meter shall be installed to measure import and export (KWh) energy. For existing service connections, the uni-directional service connection meter shall be replaced with a bi-directional service connection meter. Bi-directional service connection meter accuracy and facilities shall be the same as applicable to the standard uni-directional meters for the relevant type of service connection and tariff. ‘The backup exportimport meters, when the DG Facility is more than 20 KWp shall also be installed at the cost of Distributed Generator after paying the Demand Notice issued by FESCO, however, due to non-availability of exporvimport meters in FESCO, consumer shall provide the specified meters from the approved manufacturer of NTDC/FESCO after getting NOC from concerned SE (O) / XEN (0). ‘The meters supplied by the applicant would be tested at M&'T Lab for their accuracy and other parameters, ENERGIZATION / SYNCHRONIZATION OF DG FACILITY I'the installation of Distributed Generator satisfies all the above conditions the synchronization ofthe DG Facility shall be carried out by the standing committee within 03 working days from the issue of approval for synchronizing and commissioning ‘The Applicant/ consumer shall be present at the time of synchronization of the installation. AUihe time of commissioning, the meters installed shall be jointly inspected and scaled on behalf of both the parties and shall be interfered / tested or checked only in the presence of the representatives of the consumer. the standing committee will issue synchronization certificate to the applicant of DG Facility after synchronization and commissioning. order to ensure that its tripping cause was DG will be responsibie for providing approved auto synchronizing relay for synchronizing solar / wind power with FESCO system PERIODICAL INSPECTION: Distributed Generation Facility and Bi-directional energy meters are to be inspected/checked: < 10|Page oNFESCO Amended Net Metering SOP a. By Sub Divisional Officer (Op) along with authorize representative of M&'T up to 25 KW according to prevailing checking procedure, b. By Executive Engineer M&T along with Executive Engineer (Op) and Sub Divisional Officer (Op) above 25K W to 500 KW at least once in 06 Months. €. By Superintending Engineer M&T along with Superintending Engineer (Op) and Executive Engineer () above 500 KW at least once in 06 Months. 2. Periodical test reports/inspection reports shalll be submitted to the concerned authorities i.e, Chief ngineer (Op), SE (Op), Executive Engineer (Op) and SDO (Op). I. TERMS OF AGREEMENT, - The term of this Agreement will be Seven (07) years as per NEPRA Regulations (amended time to time) with effect from commissioning of Distributed Generation Facility, however, FESCO / Distributor Generator (DG) may terminate the Agreement upon Thirty (30) days written notice, 2. ‘This Agreement will be extendable with the mutual written consent of the parties. 3. Distribution Company (FESCO) shall not terminate the Agreement in any event without prior approval of NEPRA of already installed DG facility more than 25 KW. cx. isserting mate on clare = hse cea aces C6 anol eT Ee SE (TS) M&T Circle Director (CA) O/O CFO (Member) (Member) c= hPa Manager (CM&RA) O/O DG (MIRAD) Chief Engineer (Operation) (Member) (Member) Sans te. Set Chief Engineer (P&D) Director General (MIRAD) (Member) (Member) General\lanager (C&CS) (Convener) NPsSUBJEC DISSENTING NOTE ON REVISION OF NET METERING SOP IN FESCO 'ESCO’s office order No. 4038 dated 30.10.2023. Pursuant to above, a draft SOP on the subject has been prepared by the committee. Although the SOP has been prepared keeping in view the company requirements and NEPRA directions issued from time to time but critical analysis thereof reveals following important points which needs Hine Consideration and detailed deliberation by the FESCO management to avoid tmnecessary Ault, FBR, administrative, Legal and other future complications, before proceeding further. 1 Clause-C(6) of the draft SOP refers to the netting of import / export units of the Distributed ‘generator during peak / off peak hours against the units supplied by FESCO to the Distribution Generator uring respective peak / off peak hours. Reference: ‘The operation of this clause may involve complications since cheaper units / cost of clectricity supplied by Distribution Generator will be netted off against the costly units / high cost clectricity supplied by FESCO to Distribution Generator which would hardly be justifiable at different forums. However, this clause can be amended / substituted in consultation with NEPRA as under:~ “The price (amount of bill) of Kwh export by a Distribution Generator during peak hours shall be net off against the price (amount of bill) of Kwh import from FESCO during peak hours and the price (amount of bill) of Kwh export by a Distribution Generator during off peak hours shall be net off against the price (amount of bill) of Kwh import from FESCO during off peak hours”, 2 Similarly, clause-C (9) refers to the price payable by FESCO to Distribution Generator (in case of implementation of clause-C (8)) shall be the National Average Power Purchase Price of FESCO as determined by NEPRA and notified by the Federal Govt. This clause also seems unjustified and may involve more complications rather it can be regarded a clear case of “double pilferage” to the Distribution Generator as on one hand cheaper units of Distribution Generator will be adjusted against costly units of FESCO pursuant to clause-C (6) and on the other hand higher price in shape of National Average Power Purchase Price @ Rs. 22.42 (comprising of Energy cost Rs. 6.73 + capacity charges Rs. 16.22 / Kwh) will be paid to Distribution Generator for exported units whereas his own share in Average Power Purchase Price has been calculated & determined by NEPRA @ Rs. 15.04 / Kwh notified vide its decision bearing No. 18249-53 dated 14.07.2023 in terms of Capacity charges only as there is no fuel / energy cost in case of solar, In this way Rs. 7.91 / Kwh [comprising 6.73 energy cost + 1.18 (difference of 16.22 National Average Power Purchase Price & 15.04 capacity charges)] will have to be paid to Distributor Generator which would be an extra burden on Public, FESCO, Economy, National Exchequer and the state as well. This complication can be avoided by filling review petition with NEPRA or writ petition With Appex court against the decision of NAPRA dated 14.07.2023 in consideration of the above facts 2s Well asthe assumptions taken by NAPRA in its decision notified vide No. 2426-41 dated 10.02.2023 that heither the basis nor the impact of existing clause regarding payment of National Average Power Purchase Price to Distribution Generator have been considered and analyzed by the stakeholders / mimagement and the authority itself whether this decision will ensure induction of cheaper energy, ‘minimizing electricity cost, the aspect of not for commercial sale, economic benefits, displacement of costlier electricity and incurring minimal losses or it will have an adverse effect and will contribute adversely in all the segments of the economy. 3 In addition to above, FESCO management is requested to forward the Draft SOP to Chief financial Officer FESCO for the input of hs office on the other potential corporate and regulatory matters ‘to avoid further complications. > DirectorNational Electric Power Regulatory Authorit Islamic Republic of Pakistan ’ [NEPRA Tower, Ataturk Avenue (East), G-S/t, Islamabad ‘Ph +92051-9206800, Fax #02'81-2600028, | Registrar ‘Web: www.nepra.org pk, E-mall egistrar@nepra.org.pk ‘No, NEPRA/R/DG(TariffyTRF-100/ /&2.4 7-53 July 14, 2023 Subject: DECISION OF THE AUTHORITY IN THE MA’ POWER PURCHASE PRICE (PPP) REFERENCES FOR THE FY 2023.24 Dear Sir, Please find enclosed herewith the subject Devision of the Authority (14 Pages) in the matter of setting up of Power Purchase Price (PPP) references for the FY 2023-24. notification in the official Gazette pursuant to Section 31(7) of the Regulation of Generation, ‘Transmission and Distribution of Electric Power Act, 1997 within 30 days from the intimation of this Decision, In the event the Federal Government fails to notify the subject tariff Decision or refer the matter to the Authority for reconsideration, within the time period specified in Section 31(7), then the Authority shall notify the same in the official Gazette pursuant to Section 31(7) of NEPRA Act. Enclosure: As above y Ye 3 (Engr, Mazhar fqbal ) Secretary Ministry of Energy (Power Division) “A? Block, Pak Secretariat Islamabad 2. The Decision is being intimated to the Federal Government for the purpose of cc: 1. Secretary, Cabinet Division, Cabinet Secretariat, Islamabad. 2. Secretary, Ministry of Finance, *Q’ Block, Pak Secretariat, Islamabad. 3. Chief Executive Officer, NTDC,414 WAPDA House, Shaharah-e-Qauid-e-Azam, Lahore Chief Executive Officer, Central Power Purchasing Agency Guarantee Limited (CPPA-G),Shaheen Plaza, 73-West, Fazl-e-Haq Road, Islamabad.© nko bt ae een PP tt PY tne eri nr ten ee eH 26, 27. 28. For the price of RFO, the Authority has assessed an average price of Rs.109,947/ MT for the FY 2023-24, keeping in view the prevailing prices of RFO. Regarding price of imported coal, the Authority observed that majority of coal used by coal power plants operating in Pakistan, is imported from South Africa and to some extent from Indonesia, therefore, for the purpose of projection of coal prices, the price forecasts given by World Bank Commodities Price Forecast, globalCOAL etc, have been considered. Accordingly, based on these reports and keeping in view the impact of devaluation of Pak Rupee, and by incorporating therein the Marine Insurance, Handling Loss, Other Charges (Port Handling Charges, Customs Duties & Cess, L/C Charges), Inland Freight etc., the price for imported coal works out as average Rs.1,951/mmbra for the FY 2023-24, ranging from Rs.1,923/ mmbtu to Rs.1,968/ mmbtu, For projection of local coal prices for Thar coal, the Authority has considered the coal price determination made by Thar Coal Energy Board (TCEB). As per the determination by TCEB, variable cost of US$ 14.45 /Ton and fixed cost of USS 29.87/Ton has been determined. In addition $ 1.45/ton is also included for ‘transportation from Mine to Power plant. The said cost determined by TCEB is to be indexed with USS /PKR exchange rate to work out the projected coal price for the FY 2023-24, which on average works out as Rs.1,220/mmbtu. The same has been considered while projecting the PPP references for the FY 2023-24. ‘The Authority understands that Pakistan's power sector costs are generally tied with dollar indexation, and any change in exchange rate parity directly impacts the Energy and Capacity charges of generation segment, which constitute over 90% of total cost of Power sector of Pakistan. With devaluation of PKR against U.S. dollar, cost in local currency increases, potentially leading to higher electricity prices for consumers. ‘Therefore, accurate assessment of PKR/ USD, is one of the most crucial element of power purchase price forecast. This assessment, inter. alia, involves analysis of ‘economic conditions, inflation rates, foreign exchange reserves, and government policies etc, tis also a fact that flexible exchange rate system is in place whereby PKR value against US. dollar and other currencies would be determined by market forces based on supply and demand dynamics, including economic fundamentals, interest rates, inflation, and capital flows rather than being fixed or heavily regulated by the government. Similarly, historical trend of exchange rate parity is also considered for future projections, Further, exchange rate parity projections by various agencies both local and international is also taken into account. Considering the aforementioned determinants, the Authority has considered an average 285 PKR / USD for the FY 2023-24. Based on the above discussion, the source wise estimated/projected generation and the estimated cost of electricity generation is given in the following table;Decision of the Authority in the matter of setting up of PPP references for the FY 2023-24 Seseraton) Falcon VoeN Fol VOR pn aia: “EPPSCPP Se a 7 ee eee a Saal al 2 2) ) S) Sl Sl = Es Bee) =a 2 se) = s “| el el es] e] Ge] 2) ae) oa] oe) ee Be, Se) Se) ) SS) S| es) a) ae) ae) Ee) ag hte tise] ayes] san] (ee sam) 60s! 27|| wea] us j (se 25363) = se 7s - re 15.04] 3554 1504] | a eat Let Peel Feel Pel], 29. The generation cost is transferred to the DISCOs as per the prescribed mechanism. 30. As per the above table, the total Power Purchase Price of XWDISCOs for the FY 2023- 24, (after excluding the share of KE), works out as Rs.2,866,159 million, which includes Rs.840,462 million for fuel & variable O&M cost and Rs.2,025,697 million as capacity charges including UoSC of NTDC & PMLTC and MoF of CPPA-G. The capacity charges translate into Rs.6,460.81/kW/month based on projected average monthly ‘MDI of 26,128 MW. Thus, the capacity charges works out as around 71% of the total projected PPP of XWDISCOs, whereas energy cost is around 29% of the total projected PPP. In terms of average per unit PPP of XWDISCOs on unit purchased basisi.e. before adjustment of allowed T&D losses of XWDISCOs, capacity charges works out as Rs.16.22/kWh, whereas energy charges are Rs.6,73/kWh, totaling to Rs.22.95/kWh for the FY 2023-24, The national average power purchase price works out as 22.42/kWh. 31. Inview of the above discussion, DISCOs wise projected PPP for FY 2023-24 is as under; eer rrr es Sena ean eer [eee rene wr June fico 300] 19995] 176i7] sel] 2083] 2458] 24500 lssco saa ose | 36703] ai2| stsas| sseos] sass leseco niae| rose| isr| wav] a7] reas) 2759 resco pss| 292| xs] zos7| aise] san] 33a lwerco have| aum| 2ase7| 3ém7| 00 76 resco vos | nau] mu] 290) mao mise leeseo tas] ise] tons] ina) tee 16s? larsco rasa | igen] i330] ase] 1o7st tan leeco sae] yao] “sate “soe | 757 3st jue) jas) 3298] sane] 5900 se zal sol 931 sil 23 “Total — —TELGH7 383115 WAL,613- 300,76 Ti3G32 T1979 aa.gelao,gex Ta,s0 Fig247 Te9.059-_Hos.259 S wai] las] wast? aa] isa] ise] 69] Loaee] ina) oes] isaos) —assse] ino) — 6a niass| sisi] 00] asus] asso] atssa] ram] 29906] szave] aesee| nara] azann| eave ase 10263] tnzms| toate] aso] an} seo] gsm] rast] moms] mssi| tee] as wuss] es) maa] 2s) 207] man] me] men) msn] mms] 220) sam] os asm6| sam] mast} aeatz| watz] on | reies| masie| mgza] soz] sas] aera | sar teas] iow] taas2| isaue] isco] sat] mises] 2hise/ inima|zaac| 203/299] 307 roo] orga ‘so00| 2c} roan] inwr) tase] 93a gor] tnenn| toads | ios] Ganz ‘ai95| roast ssc] sara] tomo] sae] gus] unas] 9g] 7am | aamo| gai] gar set] 63%] Gain! sim] sat] aoa] ssi) <0 gam] san] sas] seu] 6a tau| isa) tan] Sasa] Ses] sam] 625] az] tse] tsco] swo7) dons] esa sos] Sasa) ies|_200) gus) ami] a5] _zato| _sase| ass) sa] _esa7|_es55 Tri 86 T7786 7.356 Wa-gos V7a.205 Taos 1647 TAY TRY To st THOSE pO 32. The XWDISCO wise PPP forecast for FY 2023-24 is attached herewith as Annex-] The adjustment mechanism for the monthly fuel price adjustme nts and quarte adjustments are attached as Annex-II and Annex-III respectively. EERE. : LESSNo. NEPRA/R/ADG(Tariff’ NRG-14/24 264] Subject: o National Electric Power Regulatory Authority Registrar Islamic Republic of Pakistan February 10, 2023 Decision of the Authority in the matter of National Electric Power Regulatory Authority (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015 Dear Sir, Enel Enclosed please find herewith the subject Decision of the Authority (02 Page) in the matter of National Electric Power Regulatory Authority (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015 for information please. As above Secretary Ministry of Energy (Power Division) +A” Block, Pak Secretariat Islamabad Copy to: (alongwith copy of subject Decision): 1 Secretary Cabinet Division Cabinet Secretariat Constitution Avenue, Islamabad Chief Executive Officer Alternative Energy Development Board (AEDB) 2 Floor, OPF Building, Sector G-5/2, Shabrah-e-Famhuriat, Islamabad He ( Engr. Mazhar Iqbal ‘Ranjha ) Secretary Ministry of Finance “Q’ Block, Pak Secretariat, Islamabad Chief Executive Officer Central Power Purchasing Agency Guarantee Limited (CPPA-G) Shaheen Plaza, 73-West, Fazl-e-Haq Road, Islamabad Page| 1 of 2Chief Executive Officer, Faisalabad Electric Supply Company Lid. Abdullahpur, Canal Bank Road Faisalabad Chief Executive Officer, Hyderabad Electric Supply Co. Lid. WAPDA Offices Complex, Hussainabad, Hyderabad Chief Executive Officer, Lahore Electric Supply Company Ltd. 22-A, Queens Road, Lahore Chief Executive Officer, Peshawar Elect'ic Supply Company (PESCO) WAPDA House, Shami Road, Sakhi Chashma, Peshawar Chief Executive Officer, Sukkur Electric Power Company Ltd. Administration Block, ‘Thermal Power Station, Old Sukkur Chief Executive Officer K-Electric Limited (KEL) KE House, Punjab Chowrangiew 39~—B, Sunset Boulevard, Phase-II Defence Housing Authority, Karachi 10 12 14 Chief Executive Officer, Gujranwala Electric Power Company Ltd. 565/A, Model Town GT. Road, Gujranwala Chief Executive Officer Islamabad Electric Supply Co. Ltd. Street # 40, Sector G-7/4, Islamabad Chief Executive Officer Multan Electric Power Co. Ltd. MEPCO Headquarter, Khanewal Road Multan Chief Executive Officer Quetta Electric Supply Company Led. ‘Zarghoon Road, Quetta Chief Executive Officer Tribal Areas Electricity Supply Company ited (TESCO) Room No. 213, 1*' Floor, WAPDA House, Shami Road, Sakhi Chashma, Peshawar Page| 2 of 21, NEPRA initiated the process of amendments in the National Electric Power Regulatory Authority (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015 ("the Regulations") and proposed the following amendment; In Sub-Regulation 5 of Regulation 14 ofthe Regulations, the word "National Average Power Purchase Price (NAPPP)" be replaced with 'National Average Energy Purchase Price (NAEPP)’ 2. The process for amendment in the Regulations was initiated, keeping in view increase in National Average Power Purchase Price (NAPPP), from existing Rs.12.95/kWh to Rs19.32/KWh, after notification of revised consumer end base tariff by the Federal Government wie 25.07.2022. 3. ‘The proposed amendment in Regulations was published in the newspapers for cliciting public opinion for a period of 30 days. The Authority, however, considering the comments received from various stakeholders and media reports, decided to conduct a public hearing in the matter, which was accordingly scheduled for 27.09.2022. In this regard notice for public hearing was published in the newspapers on 21.09.2022, and also uploaded on NEPRA website. 4. The public/ consumers, during the hearing, strongly opposed the proposed ‘amendments citing reasons that electricity through net metering is one of the most efficient methods incurring low distribution losses, with no investment for distribution infrastructure, and the proposed amendment in the Regulations would discourage net metering / solar installation. 5, ‘The Authority has carefully reviewed the submissions of the stakeholders, made during the hearing & in writing and is also cognizant of the vision of the Government for induction of cheap and clean renewable energy into the system. Although, net metering is predominantly based on the concept of minimizing the electricity cost through roof top solar self-gencration for self-consumption and not for commercial sale and DISCOs have to maintain Grid & Generation Capacities for the Net Metering Consumers during non-solar hours as well However, at the same time the economic benefits of net metering in terms of displacement ‘of costlier electricity, savings of foreign exchange and incurring minimal losses, cannot be ignored. Moreover, the quantum of net metering units, at present is very low ie. below 19 of the total energy purchased by DISCOs. . Q / he Vof DUi fs DRA (Aernative 6 Inview ofthe above discussion, the Authority has decided not to amend the existing NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulation, 2015. AUTHORITY : Marge Ui = WL a _ Yidhadeg - ‘Mathar Niaz Rana (nse) ‘Engr. Maqsood Anwar Khan es Member Member Rafique Ahmed Shaikh ‘Member 2 fT