K-Electric has sought from the National Electric Power Regulatory Authority (NEPRA) to approve Rs5.27 per unit increase in the power price on account of monthly fuel charges adjustment (FCA) of March 2022.
According to sources, if NEPRA approves Rs5.27 per unit hike under the head FCA of March 2022 then the power consumers of the K-Electric will bear additional burden of approximately Rs8 billion and 59 crore.
NEPRA, in a public hearing notice, informed that a hearing in the matter of request filed by K-Electric regarding monthly FCA of March under Multi Year Tariff (MYT) 2017-2023 will be held on April 27, 2022.
“All the interested/affected parties are invited to raise written/oral objections as permissible under the law,” said NEPRA’s hearing notice.
As per details, the K-Electric earlier filed its request for monthly fuel charges adjustment (Own and Power Purchases) for the month of March 2022 and requested an FCA of Rs4.87 per unit. However, the K-Electric, subsequently, filed its revised request for monthly FCA (Own and Power Purchases) for the month of March 2022 due to change in Central Power Purchasing Agency (CPPA) rate and requested Rs 5.27 per unit increase in the tariff.
According to NEPRA, the hearing will discuss whether the requested fuel price variation is justified and, whether K-Electric has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources.
A spokesman of K-Electric said that there was a 10 per cent increase in the price of furnace oil from December 2021 to March 2022 while a 40 per cent hike in the price of Re-gasified Liquefied Natural Gas (RLNG) was registered during the said period. He said that there was a 9 per cent increase in the price of electricity which was purchased from the Central Power Purchasing Agency (CPPA) during the month of March 2022. This increase in the power tariff will directly be passed on to the power consumers for one month only.
