Govt seeks NEPRA approval for another increase

Requests a power tariff increase of Rs10.32 per unit for KE consumers

ISLAMABAD:

The Federal Government has submitted a request to the National Electric Power Regulatory Authority (NEPRA) for a power tariff increase of Rs10.32 per unit. This increase is intended to cover three quarterly adjustments for the fiscal year 2022-23 and applies to consumers of K-Electric (KE). The objective is to maintain a uniform tariff across the country.

The Ministry of Energy (MoE) has filed a motion outlining the need for this tariff adjustment and tariff rationalisation, emphasising the importance of uniformity in the country’s energy pricing under section 7 &31 of the NEPRA Act, 1997 read with rule 17 of NEPRA Tariff (Standards and Procedure) Rules, 1998.

According to the MoE, NEPRA should determine the same tariff rationalisation for KE consumers as it does for XWDISCOs consumers, with the same application period, to ensure the financial sustainability of the sector and adhere to the uniform tariff policy of the federal government.

The motion requests NEPRA to approve the determination of a uniform consumer-end tariff for KE and to pass on the burden of three Quarterly Adjustments to KE’s consumers, with a total impact of Rs10.32/unit. These adjustments encompass the 2nd, 3rd, and 4th quarters of the fiscal year 2022-23. For the 2nd quarter, the proposed increase is Rs0.4689/unit, for the 3rd quarter up to Rs4.4547/unit, and for the 4th quarter, a hike of Rs5.40/unit has been requested.

The MoE has requested the application of periodic adjustments for the 2nd quarter of FY 2022-23 for XWDISCOs of Rs0.4689 per kWh on KE consumers to maintain a uniform tariff. The motion also calls for the issuance of a separate Schedule of Tariff (SoT) for KE with the prospective application of applicable uniform rates after incorporating tariff rationalisation. This adjustment will be applicable to consumption during April, May, and June 2023, to be recovered from consumers in September, October, and November 2023, respectively.

NEPRA has scheduled a public hearing on the MoE motions for September 11, 2023.

Published in The Express Tribune, September 5^th, 2023.

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