Rs1.70 per unit hike on cards in KE tariff
PHOTO: FILE
The consumers of K-Electric (KE) may be subjected to another hike of Rs1.70 per unit in their power tariff on account of the adjustment for the first quarter of 2023-24.
The National Electric Power Regulatory Authority (Nepra) will conduct a public hearing on the adjustment for the first quarter of 2023-24 for ex-WAPDA distribution companies (XWDISCOs) and KE on November 14.
Nepra said the federal government had issued policy guidelines for the application of uniform quarterly adjustments.
Therefore, the first quarterly adjustment for 2023-24 of XWDISCOs to be determined by the authority will also apply to the consumers of KE, it added.
Earlier, Nepra issued the XWDISCOs’ hearing notice only but now the regulator has also included KE in the process through an addendum.
The distribution companies sought Nepra’s approval for the transfer of the additional burden of Rs22.56 billion to the electricity consumers on account of the quarterly adjustments.
The companies asked for this permission over the fluctuation in capacity charges, variable operations and maintenance (O&M) costs, additional recovery on incremental sales, use of system charges, market operator fee, and impact of fuel charge adjustments (FCAs) on transmission and distribution (T&D) losses during the first quarter (July to September) of 2023-24.
Read NEPRA faces scrutiny over electricity costs, capacity
In its petition submitted to the regulator on behalf of the distribution companies, the Central Power Purchasing Agency (CPPA) requested the transfer of Rs22.56 billion to the electricity consumers on account of the quarterly adjustments.
Of the total additional amount of Rs22.56 billion, the distribution companies sought permission to collect Rs12.126 billion from its clients as capacity charges.
This will be allocated to independent power producers (IPPs) to cover the cost of electricity that distribution companies did not inject into the national demand because of system constraints or low requirements.
In addition, consumers will also pay Rs4.617 billion as variable O&M) costs, Rs6.617 billion for T&D losses on monthly FCAs, and Rs10.247 billion for use of system charges as well as market operator fee.
It is to be noted that as per the decision of the authority on November 3, 2021 on a motion filed by the federal government in connection with the Winter Incentive Package for electricity users of XWDISCOs and KE, it was decided that no quarterly adjustments would apply to incremental consumption.
The impact of incremental units for the quarter has been worked out at a negative Rs11.047 billion. It is the cost of units purchased for the industrial incremental sale.
The data shared with Nepra by CPPA indicates that the Islamabad Electric Supply Company (IESCO) demanded the recovery of Rs5.542 billion, Lahore Electric Supply Company (Lesco) Rs10.308 billion, Faisalabad Electric Supply Company (Fesco) Rs4.189 billion, Peshawar Electric Power Company (Pesco) Rs2.096 billion, Tribal Electric Supply Company (Tesco) Rs 1.195 billion, Hyderabad Electric Supply Company (Hesco) Rs1.056 billion, and Sukkur Electric Power Company (Sepco) Rs926 million.
The Multan Electric Power Company (Mepco) and Quetta Electric Supply Company (Qeco) have shown savings of Rs520 million and Rs2.625 billion, respectively.
Nepra will hold a public hearing on the CPPA petition on November 14.
The request of an increase of Rs22.56 billion, if approved, will burden the consumers of the distribution companies by Rs1.70 per unit.
The same impact will also be transferred to the KE consumers
Usually, the positive adjustments on account of a quarterly one are recovered from the consumers in three months.
The increase will apply to the power consumers of the entire country, except the lifeline ones