ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Monday reserved its judgment on an Rs5.50 per unit power tariff hike for the consumers of K-Electric (KE) on account of fuel charges adjustment (FCA) and quarterly adjustment.
According to the details, the authority took up the proposed adjustment request of KE regarding monthly fuel charges adjustment (FCA) for the month of November 2021 and quarterly adjustment for the quarter ending September 2021 under Multi-Year Tariff (MYT) 2017-2023.
The KE has requested an increase Rs0.32 for FCA of November 2021 and of Rs5.18 for quarterly adjustment (July to September 2021).
The authority, after hearing objections raised by interested and affected parties, reserved its judgment which will be issued after scrutiny of records and verification of facts and figures.
Speaking on the occasion, NEPRA officials said that KE’s quarterly adjustment stands at Rs4.80 per unit instead of Rs5.18 per unit while power price for KE consumers is likely to be reduced by 75 paisa per unit instead of the 32 paisa per unit hike as requested by the KE.
“Power consumers had faced an additional burden of over Rs144 million due to violation of merit order,” they said.
However, KE officials denied the same saying that power consumers did not bear any additional burden due to the absence of gas sales and a purchase agreement.
NEPRA’s vice chairman replied that it is strange that there is no impact on gas consumers due to absence of gas sales as they are going to be hit with an impact of over Rs3 billion because of low gas pressure.
Meanwhile, the NEPRA chairman said that the authority is making efforts to revolutionise the country’s power sector and opening the local market in this regard. “The Competitive Trading Bilateral Contracts Market (CTBCM) is going to be introduced soon and it will be a game-changer for the business community,” he said.
He said the business community should not depend on a single company, adding that “KE should make future plans and leave the past”.
Earlier on December 29, 2021, NEPRA had reserved its judgment on an Rs4.33 per unit power tariff hike on account of monthly fuel price adjustment for the month of November 2021 for the consumers of all power distribution companies (DISCOs) except KE.
Meanwhile, officials of KE said that work on three agreements with the government for power purchase has been initiated.
“KE is near to inking a 2050MW power purchase agreement with central power purchasing agency (CPPA). The electric supply company has also forwarded a draft regarding tariff differential subsidy while the company will also be able to get 2050MW of electricity from National Transmission and Despatch Company (NTDC) by 2023-24,” an official of the KE said.
They said that power production with furnace oil remained low and talks with Sui Southern Gas Company Limited (SSGCL) are currently underway.
