A hefty reduction of Rs9.71 per unit in power tariff on account of fuel cost and quarterly adjustments is likely to be announced, which will provide a welcome relief to the electricity consumers of Karachi at a time of soaring inflation and increasing cost of living.
The National Electric Power Regulatory Authority (Nepra) has announced that it will conduct a public hearing on November 30 of a petition filed by K-Electric (KE) on account of fuel cost adjustment (FCA) for October 2022 and quarterly adjustment for July-September 2022, according to a statement released by the regulator.
This is the fourth consecutive petition for negative FCA filed since July where KE has sought a tariff reduction of Rs1.88 per unit for October 2022.
KE has also requested the regulator to allow a tariff reduction of Rs7.83 per unit under the quarterly adjustment for July-September 2022.
During the hearing, the focus will be on whether the fuel price variation is justified or not. It will also deliberate whether the requested quarterly variation is justified and whether KE followed the merit order while running its power plants as well as in electricity purchase from external sources.
Meanwhile, the consumers of other power distribution companies (DISCOs) are set to face a tariff increase of Rs0.2457 per unit on account of FCA for October 2022.
According to a petition filed by the Central Power Purchasing Agency-Guarantee (CPPA-G), on behalf of DISCOs, there had been an increase of Rs0.2457 per unit in fuel cost.
Published in The Express Tribune, November 19th, 2022.
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