K-Electric seeks Rs4.86 tariff increase
Along with the increase in electricity output, the cost of energy shot up after authorities opted to import expensive furnace oil, coal and LNG for power production. photo: Reuters
K-Electric has requested the National Electric Power Regulatory Authority (Nepra) to increase power tariff by Rs4.86 per unit on account of fuel cost adjustment (FCA) for April 2022.
In its petition, the private power utility pointed out that the major impact on the monthly FCA came from the increase in prices of furnace oil and the rise in cost of electricity purchase from the Central Power Purchasing Agency-Guarantee (CPPA-G).
The price of furnace oil increased 22% in April 2022 compared to the previous month.
Similarly, the price of electricity purchase from CPPA-G rose 14%. In April, the electricity was supplied by CPPA-G for Rs10.664 per kilowatt-hour (kWh) as compared to the price of Rs9.387 per kWh in March 2022.
FCA is sought by power utilities in the wake of global variation in the prices of fuel used to generate electricity and due to the change in power generation mix in the country.
This cost is passed on to consumers following Nepra’s scrutiny and approval. The consumers also receive the benefit when the cost of fuel goes down.
As per Nepra’s guidelines, K-Electric’s submissions will be discussed at a public hearing on June 14.
Published in The Express Tribune, June 8th, 2022.
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