KESC allowed to raise tariff by Re1.66 per unit

Power utility says it faced additional fuel cost of Rs1.461 billion in April.

ISLAMABAD:

National Electric Power Regulatory Authority (Nepra) has allowed the Karachi Electric Supply Company (KESC) to raise power tariff by Rs1.66 per unit on account of fuel adjustment surcharge for the months of April and May.

Nepra held a public hearing on Wednesday with acting chief Ghiasuddin in chair to address two petitions filed by the KESC and approved the increase in price of electricity for consumers in Karachi.

The regulator has approved increase in power tariff by Rs1.14 per unit for April and Rs0.52 per unit for May.

The lifeline consumers using 50 units or less per month have been exempted from the surcharge. The regulator will issue schedule of recovering additional fuel cost shortly.

During the public hearing, officials of KESC said that it had sold 1.3 billion units of electricity to the consumers of Karachi during April and 1.49 billion units during May 2012.They said that KESC had faced additional fuel cost of Rs1.461 billion in April and Rs776 million in May which are required to be recovered from the consumers.

Nepra members expressing concerns over the failure of the KESC management in submitting annual report relating to heat and efficiency rates of power plants, directed it to submit the report before the next hearing on power tariff hikes.

They observed that KESC was producing expensive electricity from the Bin Qasim Thermal Power, rather than getting it on cheaper rates from independent power producers.

Published in The Express Tribune, July 19^th, 2012.