National Electric Power Regulatory Authority (NEPRA) has allowed Kelectric to use Re-gasified Liquefied Natural Gas as the alternate fuel to bridge the demand and supply gap providing relief to end consumers with no change in the electricity tariff.
According to the notification posted on the website of NEPRA, K-Electric requested NEPRA to allow RLNG as an alternate fuel for its existing power plants. According to KE, the request has been field in purview of the Cabinet Committee on Energy directives dated April 23, 2018, wherein Sui Southern Gas was directed to increase gas supply to KE under an arrangement of 130 MMcfd of natural gas and 60 MMcfd of RLNG to meet KE’s minimum gas requirement of 190 MMcfd.
KE also requested the Authority to provisionally approve inclusion of RLNG as an alternate fuel with effect from the date of Cabinet Committee on Energy directives as according to KE, it started operating its power plants on RLNG with effect from the date of Cabinet’s directives.
The Authority admitted the application of KE on May 9, 2018 and decided to initiate proceedings to modify the existing mechanism of fuel cost component on account of RLNG. The Authority also considered the request of KE for immediate application of RLNG as alternative fuel.
In order to bridge the demand and supply gap and to provide immediate relief to end consumers, the Authority has decided to allow immediate application of RLNG as alternative fuel in the instant case subject to an order of refund for the protection of the consumers, while the proceedings are pending before the Authority.
This shall also be subject to utilization of minimum quota of 180 MMcfd of gas for KE.
The Authority also hereby directs KE to execute Gas supply agreement with Sui Southern Gas at the earliest.
The immediate application of RLNG as alternate fuel shall be subject to the following conditions:-
Utilization of RLNG shall only be allowed after utilization of the minimum quota of MMcfd of local gas, the dispatch shall be strictly in accordance with the economic merit order, operation on simple cycle shall not be allowed and reference fuel price on gas and RLNG shall be the same.
