K-E seeks Rs5.5 per unit hike in tariff

NEPRA to take up power utility’s plea on Jan 3

KARACHI:

The K-Electric on Thursday asked the National Electric Power Regulatory Authority (Nepra) to raise its tariff by Rs5.49 per unit on account of fuel charges adjustment (FCA).

According to a notification, the KE has requested an increase of Rs5.182 for the first quarter of the current fiscal year — July to September — and Rs0.317 for November.

The national power regulator will take up the KE's plea for a hearing on January 3 next year.

Earlier this month, Nepra had allowed the KE to collect Rs3.75 per unit on account of FCA for the month of September from its consumers.

The power consumers of the Karachi would have to pay an additional Rs7.22 billion in their electricity bills this month after the move.

The KE had requested the regulator -- under the multi-year tariff 2017-23 -- to allow the company to pass on the burden of Rs6.639 billon to the consumers in its service area under the FCA for September. However, later the request for an increase by the KE was revised upward on the basis of actual data.

On November 3, Nepra had conducted a public hearing on the KE petition.

During the hearing, the KE had submitted that at the time of submission of its FCA request, the authority's approved fuel rate of XWDISCOs for the month of September was unavailable.

Therefore, the utility had used the last available rate in its workings.

Also read: Karachi to pay extra Rs7.22b in Dec power bills

The power company, accordingly, had requested that the amount claimed on the account of energy purchased from the Central Power Purchasing Agency (CPPA-G) was subject to adjustment based on the FCA decision of the authority in the matter of XWDISCOs for September.

The KE had also submitted that major reason for the high FCA for September was because of the increase in the prices of re-gasified liquefied natural gas, refined furnace oil and coal against the month of June.

Later this month, the regulator had also allowed an increase of Rs4.7446 per unit in the power tariff, enabling ex-WAPDA Discos (XWDISCOSs) to collect an additional Rs61 billion from consumers through December’s bills.

A Nepra notification read that the increase came on account of monthly FCA for October 2021 because of excessive use of refined furnace oil, high-speed diesel and liquefied natural gas in power generation.

Last month, the national power regulator had allowed up to Rs1.68 per unit increase in the electricity tariff from November 1 in order to phase out power subsidies.

The tariff hike was the first phase of eliminating power subsidies. More increases are on the cards as government is working on the second and third phases of reducing subsidies in the power sector. Due to the increase in the base tariff, the government would collect Rs135 billion extra annually.

According to a notification issued then, Nepra had decided to increase the electricity tariff by up to Rs1.68 for domestic consumers and Rs1.39 per unit for commercial and industrial consumers. The increase would not apply to consumers using up to 200 units per month.