KE customers likely to get temporary relief before massive tariff hike

ISLAMABAD: The Karachi Electric (KE) has asked the National Electric Power Regulatory Authority (NEPRA) to approve relief worth Rs6.2 billion to its consumers on account of fuel charges adjustment (FCA) for the month of July.

However, in another application submitted with NEPRA under the head quarterly adjustment for the quarter ending June 2022 Multi Year Tariff (MYT) 2017-2023, KE has sought a Rs14.53/unit hike in the power tariff.

According to the details, KE has submitted an application advocating a negative FCA of Rs3.47 per kilowatt hour (kWh) for July.

In this regard, a spokesman of KE said that the negative FCA was because of a 31% reduction in the price of electricity which was purchased from the central power purchasing agency (CPPA) in addition to a 16% decrease in the price of Re-gasified Liquefied Natural Gas (RLNG).  

In regard to the massive hike requested by KE, the spokesman said that the quarterly adjustment is usually not passed on to customers under the government’s uniform tariff policy. However, the final decision in this regard will be taken together by NEPRA and the government.

It is pertinent to note that NEPRA has notified that the authority will conduct a hearing to consider the proposed adjustments on August 31 and has invited all the interested parties to raise written and oral objections as permissible under the law.

According to the authority, the following issues have been framed to be discussed during the course of its hearing:

1- Is the requested fuel price variation justified

2- Is the requested quarterly variation justified

3- Has K-Electric followed the merit order while giving dispatch to its power plants as well as power purchases from external sources?

4- Do the existing fixed charges applicable to different consumer categories need to be revised?

It is pertinent to mention that NEPRA’s decision in the matter of Multi-Year Tariff (MYT) petition of K-Electric Limited has been notified vide SRO No. 576 (1)/2019 dated May 22, 2019.