NEPRA may increase K-Electric’s tariff by Rs1.29

Price hike will be under fuel cost adjustment for February

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) may allow K-Electric to increase power tariff by Rs1.29 per unit on account of fuel cost adjustment for the month of February 2022.

The regulatory authority conducted a public hearing on Monday to consider the increase in tariff sought by K-Electric.

During the hearing, Nepra Chairman Tauseef H Farooqi hinted at allowing the company to transfer a burden of Rs1.474 billion to the residents of Karachi.

In its petition, K-Electric sought a tariff increase of Rs3.45 per unit on account of fuel cost adjustment for February 2022. According to the power utility, the hike will have an impact of Rs3.95 per unit on the power tariff applicable to the company’s consumers.

However, after the verification of data and previous adjustments, the regulator calculated an increase of Rs1.288 per unit.

Nepra officials told the hearing that since the rate for February was not approved, K-Electric purchased energy in the month at rates based on Central Power Purchasing Agency-Guarantee (CPPA-G)’s calculation.

The provisional rate of Rs8.9396 per unit for ex-Wapda distribution companies was used for February 2022 instead of Rs12.4614 per unit claimed by K-Electric. It resulted in a favourable impact of Rs2.43 billion on the consumers, the officials said.

In its claim, K-Electric used RLNG rate of Rs2,479.61 per mmbtu whereas the rate of Rs2,449.05 per mmbtu was verified from its RLNG bills. It also resulted in a favourable impact of Rs41.61 million on the consumers.

It was informed that consignment-wise, CV of Gul Ahmed and Tapal Energy had been sought from K-Electric for adjustment of fuel cost on account of CV, however, K-Electric had not provided the same yet.

Keeping in view the decision of the authority, there was a deduction of Rs1.22 million and Rs3.91 million for Tapal and Gul Ahmed respectively, the official informed.

Nepra chairman inquired about the finalisation of gas sale agreement with Sui Southern Gas Company (SSGC) from K-Electric’s officials. It was informed that the finalisation of the gas sale agreement was under process.

Nepra reserved its judgement on K-Electric’s petition for tariff hike and would announce its detailed verdict following a thorough scrutiny of data.

It is pertinent to mention that Nepra had allowed an increase of Rs3.28 per unit in K-Electric’s tariff on account of fuel cost adjustment for January.

Published in The Express Tribune, April 5^th, 2022.

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