KE consumers brace for double whammy

Rs2.53 and Rs2.92 per unit hike on the cards under FCA

ISLAMABAD:

The power consumers in Karachi are set to be charged Rs2.53 and Rs2.92 per unit for May and June consumption respectively on account of fuel charges adjustment (FCA).

The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing to increase the tariff for K-Electric consumers. During the hearing, the stakeholders said that NEPRA was a rubber stamp and was not taking into account the interests of consumers.

They alleged that while the power regulator failed to implement the decisions favourable to consumers, it readily enforced those benefiting companies and government.

The claims for monthly fuel charges adjustment include the monthly variation in fuel costs of KE's own generating plants and power purchases for May and June 2024 which will be passed on to consumers except for lifeline consumers.

K-Electric has filed the FCA on a provisional basis under the mechanism approved by the authority in the FCA decision for July 2023 and March 2024.

During the hearing, Imran Shahid from Jamaat-i-Islami blamed IPPs for the production of most expensive electricity in Pakistan. He claimed that industries were closing down due to expensive electricity.

NEPRA chairman denied JI representative's allegations and said that all the decisions taken by the authority were available on its website. If anyone has any grievance, they can file appeal against them.

Rehan Jawed from Korangi Association of Trade and Industry (KATI) argued that the sky-rocketing electricity bills had forced people to stage protest demonstrations all over the country, adding industries also have no other choice but to come onto the streets to protest against inflated bills.

He suggested that the upcoming FCA requested by K-Electric may be charged half in the upcoming month while the remaining during winters.

Arif Bilwani, another industrialist from Karachi, questioned K-Electric why high-speed diesel (HSD) was being used in one of its power plants. The KE representative replied that the utility is using HSD due to non-provision of natural gas.

Arif Bilwani termed NEPRA a 'rubber-stamp' as it reportedly accepted any instructions coming from the energy ministry and the federal government.

One of the participants of the hearing also questioned the pending dues of SSGC against KE. In reply, KE representative briefed that the utility had not defaulted on current payments to SSGC.

Answering a question regarding the recent rebasing by NEPRA on the request of the federal government, the NEPRA chairman said that the government wanted the per unit cost at Rs8.28 but it was fixed at Rs5.72 over the intervention of NEPRA; thus, the authority protected consumers from an additional burden of Rs260 billion.

After the hearing, NEPRA reserved the judgment on KE's petition for May and June FCA and will notify the decision later.

It is also pertinent to note that ex-WAPDA DISCOs have also sought Rs3.33 and Rs2.63 per unit increase for FCAs of May and June respectively.