NEPRA revises tariff for K-Electric during Jul-Dec 2020

Allows hike in rates for four months and reduces price for three months

Our Correspondent June 05, 2021
In the petition, Wapda requested Nepra to set overall tariff at Rs3.01 per kilowatt-hour (kWh), which would allow it to pay net hydel profit to K-P for the electricity produced and supplied by the province. PHOTO: AFP


The National Electric Power Regulatory Authority (Nepra) has revised the seven- month tariff for K-Electric on account of fuel adjustment.

It allowed the power utility to increase the rates for July, August, September and December 2020, and decrease the tariff for June, October and November 2020.

Nepra issued a decision on Friday relating to revision in tariff for K-Electric on account of fuel adjustment for June 2020 to December 2020 in the matter of K-Electric.

NEPRA allowed Rs0.7256 per unit increase for July 2020, Rs0.3078 per unit for August, Rs0.710 per unit for September and Rs0.49 per unit for December 2020. In view thereof, the authority has decided to allow the recovery of the aforementioned fuel charge adjustments from the consumers in a period of two months ie June 2021 and July 2021.

However, the authority has approved the reduction in tariff by Rs0.7478 per unit for the month of June 2020, Rs0.028 per unit for October 2020, Rs1.10 per unit for November 2020 on account of monthly fuel adjustment.

Read more: NEPRA hints at up to 68 paisa tariff adjustment

Nepra said that the increase will be applicable on all the consumer categories except lifeline consumers. It shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains.

Similarly, reduction in tariff on account of fuel adjustment shall be applicable on all consumer categories except lifeline consumers, domestic consumers consuming upto 300 units and agriculture consumers of K-Electric.

It is hereby clarified that negative adjustment on account of monthly fuel charge adjustment is also applicable on the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

Further industrial consumers availing ISP will not get the benefit of negative fuel charge adjustment on incremental sales only. They will, however, get the benefit of on base tariff billed units.

The regulator is also cognizant of the fact that the period for which fuel charge adjustments are being allowed has already lapsed and variations on account of fuel cost have not yet been recovered/passed on to the consumers.

The authority was of the view that any such variations need to be passed on to the consumers in timely manner in order to ensure financial viability of the company, which otherwise would result in piling up of the legitimate costs and may impact the financial viability of the company.

However, at the same, the authority in the interest of the consumers, needs to ensure that consumers are not overburdened by passing on the allowed costs in one go.


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