Nepra green-lights Rs11.1 per unit hike in power tariff of K-Electric

ISLAMABAD – National Electric Power Regulatory Authority Thursday approved another massive hike of Rs 11.1023 per unit in power tariff of K-Electric on account of fuel charges adjustment for the month of June.
The Authority has decided to allow positive FCA of Rs 11.1023/unit for the month of June 2022, to be passed on to the consumers in their monthly bills of August & September 2022, said NEPRA decision, on KE’s petition for FCA, issued here. Initially KE had sought an increase of Rs 11.389/unit in power tariff on account of monthly FCA for June, which had an impact of approximately Rs 26b (Rs22.254b +GST) on Karachiites. However, the authority after examining the data and making some adjustments has allowed a hike of Rs 11.1023/unit in power tariff which will have an impact of Rs 25.393b (FCA Rs 21.704+GST Rs 3.689b) on the KE’s consumers. The increase shall be applicable to all the consumer categories except lifeline consumers.
The decision said that the Authority understands that burdening the consumer with FCA of June 2022 i.e. Rs. 11.1 023/unit in August would not be in the interest of the consumers. The Authority has decided to charge Rs.3.0114/unit, for the FCA of June 2022 in billing month of August 2022. Whereas, the remaining i.e. Rs.8.0909/unit shall be charged in the billing month of September.
Regarding GIDC, K-Electric submitted that installment of GIDC arrears amounting to Rs.762 million per month in being billed by SSGC as per Supreme Court order. However, NEPRA in its FCA decision for the month of June 2021 considering the fact that K-Electric has obtained stay order from the honorable SHC in the matter, decided not to allow any amount on account of GIDC till final decision by the honorable SHC in the matter. K-Electric accordingly stated that GIDC for the current month will be claimed as per the final decision of the honorable SHC in the matter.
Regarding cost of energy purchased from CPPA-G during the current month, K-Electric has used the rate of Rs. 15.844/unit, however, the Authority’s approved fuel cost component, in the matter of XWDISCOs, for the current month is Rs.15.8316/kWh which has resulted in decrease in total fuel cost by around Rs.3.13 million. As per the working of KE, it has calculated a loss of Rs.37.45 million because of net metering. The Authority has decided to include both the units purchased by KE through net metering along with its cost in the FCA being in the interest of the consumers.-PNP