NEPRA hikes power tariff for K-Electric by Rs9.42 per unit

National Electric Power Regulatory Authority (NEPRA) has scrutinized a massive Rs9.42 per unit increase in the electricity tariff for the consumers of K-Electric on account of Fuel Charge Adjustment (FCA) for the month of May 2022.

As per details, Karachiites may face additional burden of billions of rupees as NEPRA has so far worked out an enormous Rs9.42 per unit hike in power tariff for K-Electric (KE) consumers under the head FCA of May. However, it (NEPRA) will issue the detailed verdict in this regard after further examination of the data submitted by KE.

NEPRA’s hearing was held on Monday under NEPRA chairman Tauseef H. Farooqi wherein NEPRA members Rafique Ahmed Shaikh and Anwar Maqsood were in attendance.

Earlier, K-Electric asked the National Electric Power Regulatory Authority (NEPRA) to jack up the electricity price by colossal Rs11.34 per unit on account of fuel charge adjustment (FCA) for the month of May 2022.

It is relevant to note that protected lifeline consumers of K-Electric will not be affected with this power tariff hike while this requested increase in power price will be applicable for only one month.

As per the definition of lifeline consumers by National Electric Power Regulatory Authority (NEPRA), lifeline consumer means those residential consumers having single phase electric connection with a sanctioned load up to 1 kilowatt (KW) and the lifeline consumers to include residential Non-Time of Use (Non-ToU) consumers having maximum of last twelve months including current month’s consumption is equal or lesser than 100 units.

According to KE, the major impact on the monthly FCA of May 2022 is due to an increase in the fuel price increase of furnace oil and power purchased from the Central Power Purchasing Agency (CPPA). The price of furnace oil in May 2022 has increased by 38 percent from March 2022 while the price of Re-gasified Liquefied Natural Gas (RLNG) between March to May 2022 has increased 50 percent.

The price of electricity from CPPA in May 2022 has increased by 53 percent and the price of CPPA as of May 2022 is Rs13.897 per kWh as compared to the price of Rs9.387 per kWh in March 2022.

Fuel Charge Adjustment (FCA) is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers following NEPRA’s scrutiny and approval and are one-time charges. Consumers also receive a benefit when the cost of fuel decreases.

As per NEPRA guidelines, the submissions of KE will be discussed in the public hearing scheduled to be held on July 4, 2022 and the regulator is likely to approve KE this request after necessary scrutiny of the data and issue instructions on the period during which these costs can be applied to consumer bills, said the KE.