NEPRA hikes power tariff by Rs 12.68/unit under quarterly adjustment for KE

ISLAMABAD: Karchiites might face additional burden in electricity bills as the National Electric Power Regulatory Authority (NEPRA) has allowed Rs12.68 per unit increase in electricity prices for the consumers of K-Electric (KE) as part of the quarterly adjustment.

As per details, NEPRA has allowed quarterly adjustment of Rs. 12.6818/kWh under the head fourth quarter adjustment of K Electric for the financial year 2021-22.

The NEPRA authority held a hearing on the quarterly adjustment on August 31.

K-Electric initially requested a quarterly adjustment for the quarter 4th quarter FY 2021-22 of Rs.14.852/kWh, however, subsequently revised its request to Rs. 14.533/kWh.  After examining the data, the authority has issued a decision regarding the adjustment, said NEPRA.

As per practice, the government maintains a uniform tariff across the country and generally the differential is adjusted through subsidy, NEPRA added.

NEPRA also stated that it (NEPRA) has sent the decision to the federal government prior to its notification in the official Gazette as per Section 31(7) of the NEPRA Act.

According to a spokesman of n K-Electric, NEPRA’s determinations are in accordance with the mechanism given in KE’s Multi Year Tariff whereby changes in fuel prices, generation and power purchase mix are passed through along with certain annual adjustments.

 Per Government of Pakistan’s uniform tariff policy applicable across the country, these variations are not likely to impact consumers. However, the final decision will be based upon Government’s notification, the spokesman added.

Pursuant to the provisions of Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997, and as per the mechanism for monthly, quarterly and annual adjustments provided in the tariff determination of K-Electric Limited, the Authority has to review and revise the approved tariff on monthly, quarterly and annual adjustments.

As per the mechanism provided in the determination, impact of change in KE’s own generation fuel cost component due to variation in fuel prices, generation mix and volume shall be passed on to the consumers directly in their monthly bills in the form of Fuel Charges Adjustment (FCA). Similarly, impact of change in the fuel component of Power Purchase Price (PPP) due as to variation in fuel prices and energy mix shall also be passed on to the consumers through monthly FCA.

However, the impact of monthly variations in K-Electric own generation’s fuel cost component as well power purchase price to the extent of targeted T&D losses, not taken into account in the monthly FCAs, has to be adjusted on a quarterly basis. In addition, the monthly variations in the variable O&M and fixed Costs of the PPP, as allowed by the Authority, are required to be adjusted on a quarterly basis.

Pursuant to notification of the determined Multi Year Tariff (MYT), K-Electric filed its Quarterly Adjustment request on account of Power Purchase Price (PPP) and prices level reset for the quarter ending June 2022 along with supporting documents.

Ahmad Ahmadani
Ahmad Ahmadani
The author is an investigative journalist. He can be reached at [email protected]

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