KESC unable to cut tariff despite NEPRA’s nod

KESC will not pass on the benefit of a reduction in power tariffs, despite an approval by Nepra.

KARACHI: The Karachi Electric Supply Company (KESC) will not pass on the benefit of a reduction in power tariffs, despite an approval by the National Electric Power Regulatory Authority (Nepra), an official said.

Official sources said a plea submitted to Nepra by the KESC seeking a reduction in power tariff charged for April, May and June 2010 by 10, 10 and 40 paisa per unit respectively was approved on Wednesday, after KESC representatives provided arguments for the intended reduction.

The KESC had earlier submitted records of power generation and power purchased from external sources to Nepra on September 5. In its plea, the KESC argued that the cost of electricity production, generation and transmission to customers had dropped following a decline in international fuel prices. The power supplier had suggested that this decrease should be passed on to customers through retrospective adjustments in fuel surcharge charged for the months of April, May and June.

However, despite the approval from Nepra, the KESC will not pass on the relief in terms of lower electricity bills to consumers because of a court order restricting any change in power prices.

“The Sindh High Court has issued a stay order that bars the KESC from changing tariffs,” explained KESC spokesperson Amir Abbasi. “The benefit will be passed on once the stay order is vacated,” added Abbasi.

Published in The Express Tribune, September 23^rd, 2010.