K-Electric (KE) has filed a tariff petition for its power generation plants with the National Electric Power Regulatory Authority (NEPRA) from July 01, 2023, till their remaining licensed useful lives.
According to KE, the petition has been admitted by the regulatory authority (NEPRA) for KE’s generation segment which comprises six thermal-based power plants.
Through this petition, KE has proposed a tariff for the remaining life of generation plants with a structure that is in line with IPPs in which expenditures are allowed through a fixed and variable O&M. This will help to have visibility and align the tariff structure with Competitive Trading Bilateral Contracts Market (CTBCM) requirement and industry practice.
Currently, the regulator has issued a notice for stakeholders’ comments on KE’s generation tariff petition, and it is expected to conduct a hearing after which the regulator will issue its determination.
Since privatisation, KE has invested over PKR 400 billion across its value chain including PKR 203.9 billion in the generation segment. With the help of targeted investments, KE was able to greatly improve reliability, availability, and capacity of its generation fleet. As a result, KE’s generation fleet efficiency has increased from 30% in 2005 to nearly 44%. Since FY 2016, KE’s generation fleet reliability has increased from 96% to 99.5%, whereas fleet availability has increased from 81% to 91%, generation capacity increased from 1,875 MW to 2,817 MW including the addition of 900 MW Bin Qasim Power Station (BQPS-III).