K-Electric Tariffs Expected to Rise by Rs. 4.8 Per Unit

The cost of quarterly adjustments for Karachi is expected to be as high as Rs. 4.80 per unit.

National Electric Power Regulatory Authority (NEPRA) reserved its decision after hearing K-Electric’s request for an increase in the per-unit price of electricity. NEPRA Authority will issue a decision after reviewing the data.

A petition was filed in this regard by K-Electric, upon which a hearing was conducted at Nepra headquarter. It is expected that for the electricity consumers of Karachi, the quarterly adjustments are likely to cost up to Rs. 4.80 per unit for the months of July to September 2021.

K-Electric sought an increase of Rs. 5.18 per unit in terms of quarterly adjustment for July-September 2021.

Nepra officials informed the committee that the quarterly increment is calculated at Rs. 4.80 per unit. As per the decision, which is to be announced later, a Rs 4.50 increase in terms of fuel and 30 paise in capacity charges are likely to be allowed in quarterly adjustments.

According to NEPRA statistics, violation of merit orders has affected consumers to the tune of Rs. 144.6 million.

K-Electric officials during the hearing said that there is no burden on the consumer due to the non-availability of gas as well as the absence of a sale and purchase agreement.

Vice-Chairman NEPRA questioned K-Electric’s response, stating that the shortages of gas have burdened the consumers. The reduction in gas pressure from August till now will impose a burden of Rs 3.25 billion on consumers, NEPRA officials informed the hearing.

K-Electric officials informed the authority that they have started work on three agreements regarding the purchase of electricity from the federation.

Soon an agreement to purchase 2,050 MW of electricity from CPPA would be signed, and a draft regarding tariff differential subsidy has also been sent to the Ministry of Energy to settle it at the earliest.

K-Electric claimed that by 2023-24, the utility company will be able to procure an additional 2,050 MW of electricity from the national grid.

K-Electric also sought a 32 paisa increase for fuel cost adjustment for November. After the hearing, November’s monthly fuel price adjustment is likely to bring relief of 75 paisas per unit for K-Electric consumers.

During the hearing, the Chairman NEPRA questioned that why K-Electric requests to increase the price of power units instead of employing cheap power generation resources.

Chairman NEPRA also inquired about the extent of the issue of lower gas pressure. K-Electric officials replied that gas was being supplied to K-Electric from SSGC. K-Electric officials further said that due to the local gas crisis, power generation from RLNG has increased by 6 percent.

NEPRA officials questioned the K-Electric officials regarding electricity being generated from expensive sources despite the availability of gas, further burdening the consumers.

The officials from NEPRA ruled that for November, K-Electric customers will get a relief of 75 paise per unit on account of monthly fuel cost adjustment.

NEPRA will issue a decision after reviewing the data on both quarterly and monthly tariff petitions.

Chairman NEPRA said that the authority is bringing CTBCM for the business class, which will open Pakistan’s power market for the international players as well.

The business community will not have to rely on a single power company, opined the Chairman NEPRA.

The decision is reserved on both and notification regarding quarterly and monthly fuel adjustments would be issued later on.

Source: Pro Pakistani

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