KE consumers may face another electric shock

Nepra indicates another increase by Rs4.83 per unit for Karachi residents

KARACHI:

The National Electric Power Regulatory Authority (Nepra) on Wednesday indicated an increase by Rs4.83 per unit for K-Electric (KE) consumers.

The Nepra chairman presided over a public hearing in the federal capital.

The KE had sought an increase by Rs5.27 per unit on account of fuel adjustment for the month of March 2022.

During the hearing, the power regulator remarked that the tariff increase amounted to Rs4.83 per unit according to the scrutiny of the data, adding that a decision would be taken after complete examination of the KE data.

The power consumers of Karachi would bear an additional burden of around Rs8.59 billion if the tariff is approved.

Meanwhile, Nepra also conducted public hearing regarding other power distribution companies where it indicated an increase in tariff by Rs2.87 per unit for their consumers. The tariff hike had been requested under fuel charges adjustment for the month of March this year.

On April 15, Nepra had increased the electricity price by Rs4.85 per unit on the account of monthly fuel charges adjustment for the month of February after conducting a hearing on the plea of Central Power Purchasing Agency (CCPA-G). The Lifeline and KE consumers were exempted from the tariff hike.

A spokesperson for KE said that the price of furnace oil had increased by 10% and that of re-gasified liquefied natural gas (RLNG) by 40% between December 2021 and March 2022.

He said the price of electricity purchased from CPPA-G was also raised by 9% in March.

“The effects of the changes in the price of fuel and electricity obtained from CPPA-G are in accordance with the rules of NEPRA.”

The increase in the power tariff would directly be passed on to the city’s power consumers for one month. The surge and cut in fuel charges adjustment under the tariff system was passed on to the consumers through their monthly bills under a fixed formula.

These charges were applied after Nepra’s investigation into the claims made by KE and government-owned entities (XWDISCOs) following an independent public hearing.

In addition to transferring prices to consumers, Nepra also determines the period for which the tariff hike is applicable.

Earlier, the KE had filed a request for fuel charges adjustment of Rs4.87 per unit for the month of March this year. However, it filed a revised request for fuel charges adjustment for the same month because of a change in the CPPA-G’s rate and requested Rs5.27 per unit increase in the tariff.

On March 30, Nepra had already notified Rs3.278 per unit increase in the tariff for the KE consumers on account of fuel charges adjustment for the month of January 2022.

The fuel charges adjustment for January were charged in the billing month of April 2022.The tariff hike had put an additional burden of Rs3.586 billion on the residents of Karachi.

Discos tariff

Nepra also conducted hearing regarding increase in tariff for other power distribution companies on account of fuel adjustment.

The power regulator indicated that the consumers would be charged a reduced tariff by Rs1.98 per unit for March fuel adjustment as compared to February. Earlier, the power consumers had paid Rs4.85 per unit on account of fuel adjustment for month of February.

Now, regulator indicated an increase by Rs2.87 per unit in tariff on account of fuel adjustment for month of March 2022. The increase would be charged in the bills of May.

Meanwhile, the CPPA-G had requested an increase of Rs3.16 per unit on account of fuel adjustment for month of March. Nepra reserved its judgment and would issue a decision later.