K-Electric seeks Rs3.40 per unit hike in power price

K-Electric has requested the National Electric Power Regulatory Authority (NEPRA) to approve Rs3.40 per unit hike in power price on account of fuel charges adjustment (FCA) for the month of January 2022.

As per details, the K-Electric (KE) has asked NEPRA to jack up the power tariff by Rs3.406 per kilowatt hour under the head FCA of January 2022 while KE has also asked to decrease base power tariff by 30 paisa under the head quarterly adjustment for the quarter October to December 2021. NEPRA is scheduled to consider the proposed adjustment request of K-Electric on March 01, 2022.   

According to the NEPRA, KE has filed its request for monthly FCA (own and power purchases) for the month of January 2022 which will add Rs3,727 million additional burden on Karachiites. Similarly, KE has requested to approve Rs 30 paisa per unit cut in base tariff for quarter ending December 2021.

It is relevant to note that the proposed FCA of January 2022 will be charged in the monthly electricity bill while the proposed negative 30 paisa per unit will be included in the base power tariff.  

It is also learnt that NEPRA during the course of its scheduled hearing on March 1, 2022 will discuss whether the requested fuel price variation and quarterly variation is justified. Similarly, KE will also discuss whether KE has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources.

NEPRA in a public hearing notice in the matter of request filed by K-Electric regarding monthly fuel charges adjustment for the month of January 2022 and quarterly adjustment for the quarter ending December 2021 under multi-year tariff (MYT) 2017-2023 has invited all the interested parties to raise written or oral objections as permissible under the law.

It is pertinent to mention that MYT determination prescribes mechanism for adjustment in the MYT on monthly and quarterly basis while the decision of the Authority (NEPRA) in the matter of MYT petition of K-Electric has already been notified vide SRO No. 576(1)/2019 dated May 22, 2019.