NEPRA likely to slash KE power tariff by Rs2.59

Reduction to provide relief of Rs2.10 billion to consumers

ISLAMABAD:

National Electric Power Regulatory Authority (Nepra) is likely to cut power tariff by Rs2.59 per unit for K-Electric consumers on account of fuel adjustment for the month of December 2021.

The consumers in Karachi may get relief of Rs3 billion as National Electric Power Regulatory Authority(NEPRA) has hinted to slash a power tariff of Rs2.59/unit in K-Electric’s tariff on account of monthly Fuel Charges Adjustment(FCA) for December.

Nepra conducted a public hearing on KE’s petition for a reduction of Rs1.79/unit in power tariff on account of monthly Fuel Charges Adjustment for the month of December.

The hearing was presided over by Chairman NEPRA Tauseef H Farooqi.

Karachi Electric Company requested to reduce the price of electricity by Rs1.79 per unit for December. The K-Electric official informed during the hearing that the reason for the reduction in tariff is mainly due to less use of expensive furnace oil.

During the hearing Chairman NEPRA said that KE can make fuel arrangements from anywhere else other than Sui Southern Gas Company Limited (SSGC).

The KE’s CFO Amir Ghaziani said that they are also evaluating fuel arrangements from alternative sources.

The Nepra chairman asked regarding the status of the Gas Supply Agreement (SGA) between K-Electric and Sui Southern Gas Company Limited. The KE CFO replied that negotiations are underway with Sui Southern Gas Company over the gas supply agreement.

During the hearing, Nepra has done some adjustments in the calculations provided by KE and observed that decrease will be around Rs2.59/unit instead of the demanded Rs1.79/unit by the company in the petition.

The reduction in tariff will provide a relief of approximately Rs3bn to KE’s consumers, the NEPRA official said.

NEPRA has completed the hearing and reserved the judgment. It is worth mentioning that for the month of November also, NEPRA had reduced the KE’s tariff under monthly FCA by Rs0.76/unit.