The National Electric Power Regulatory Authority (Nepra) on Monday indicated an increase of Rs9.42 per unit in the power tariff for K-Electric consumers on account of fuel cost adjustment for May 2022.
K-Electric requested Nepra to increase the power tariff by Rs11.33 per unit due to a higher-than-estimated fuel cost for May. The power sector regulator hinted at the big increase in tariff at a public hearing held at its headquarters to consider the revision in electricity rates on account of monthly fuel cost adjustment.
The hearing was presided over by Nepra Chairman Engineer Tauseef H Farooqi. Its members Engineer Rafiq Ahmed Sheikh and Engineer Maqsood Anwar Khan were also present at the hearing.
“K-Electric submitted an application for a tariff increase of Rs11.34 per unit. However, according to Nepra’s data, the FCA (fuel cost adjustment) costs Rs9.42 per unit,” said the regulator in a statement.
For April, the consumers were charged Rs5.27 per unit on account of fuel cost adjustment, which was only for one month, Nepra said.
“May’s FCA will be Rs4.15 more than April. This will also apply for only one month,” it added.
Nepra announced that the authority would issue its detailed decision after further scrutiny of data.
The major impact on the fuel cost adjustment for May came from the increase in the price of furnace oil and electricity purchased from the Central Power Purchasing Agency-Guarantee (CPPA-G).
The price of furnace oil rose 38% in May compared to March while the price of re-gasified liquefied natural gas (RLNG) went up 50% in the same time period.
The price of electricity bought from CPPA-G swelled 53% to Rs13.897 per kilowatt-hour in May as compared to Rs9.387 per kWh in March.
Published in The Express Tribune, July 5th, 2022.
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