KARACHI: The Central Power Purchasing Agency (CPPA) has approached National Electric Power Regulatory Authority (NEPRA) seeking approval for the market operation fee of Rs2.3812/kW/month to meet its revenue requirements for FY 2018-19.[the_ad id=”32940″]In order to meet the expenses for discharging its functions and plans, CPPA is required to get the revenue requirements approved from NEPRA. If approved, the market operation fee is added into the electricity cost.
The total revenue requirements comprise of existing cost, additional operating cost and the capital cost for effective operations of CPPA-G for compliance with present and future requirements.
CPPA revenue requirements include general establishment cost, administration cost, insurance, finance charges, repair and maintenance and capital expenditure. CPPA has proposed FY 2018-19 revenue requirement of Rs960.55 million, which is 8.9 percent higher than the approved budget of Rs881.73 million for FY 2017-18.
NEPRA would conduct a hearing on May 14, 2019 to consider CPPA’s petition whether the requested general establishment cost, administrative cost, repair and maintenance, insurance and finance charges and proposed capital expenditure are reasonable and justified.
CPPA has proposed general establishment cost of Rs654.80 million, administrative costs of Rs133.86 million, repair and maintenance at Rs31.49 million and capital expenditure of Rs138.90 million for FY 2018-19.