K-Electric to increase tariff by Rs0.36 per unit

NEPRA allows revision due to rise in fuel cost

KARACHI: The regulatory authority has allowed K-Electric to revise upwards its tariff by Rs0.36 per unit because of the increase in the cost of production in June 2016.

After a hearing, the National Electric Power Regulatory Authority (Nepra) announced on Monday that the tariff revision would be shown separately in the consumer bills of September 2016 on the basis of units billed for June.

“The adjustment will be applicable to all consumer categories except for lifeline consumers,” Nepra said.



Earlier, K-Electric had requested Nepra to increase the tariff by Rs0.45 per unit.



The company said the variation was due to increase in per unit weighted average fuel cost of generation by the Bin Qasim Power Station-I (BQPS-I) from Rs5.446 per kilowatt-hour (kWh) in March 2016 to Rs7.059 per kWh in June 2016.

The variation in fuel price per unit occurred due to the escalation in weighted average price of furnace oil from Rs19,376 per ton in March 2016 to Rs27,658 per ton in June.



Furthermore, gas price had also increased from Rs600 to Rs613 per million British thermal units, applicable from April 1, 2016. This increase had also contributed to the fuel price variation not only for BQPS-I but for all other power stations in K-Electric’s fleet, the company said.

Published in The Express Tribune, September 6^th, 2016.

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