The National Electric Power Regulatory Authority (Nepra) has approved a negative adjustment of Rs6.690 billion for K-Electric for the quarter of April-June 2023 under the Quarterly Tariff Adjustment (QTA) mechanism.
This adjustment will be incorporated into the new Multi-Year Tariff (MYT) for the period from 2023-24 to FY 2029-30.
The authority conducted a hearing on K-Electric’s Quarterly Adjustment request submitted on October 19, 2023. Nepra decided that the claim for write-offs requires further deliberation and analysis.Â
Consequently, the write-offs of Rs16.264 billion claimed by K-Electric, including the amount already built into the tariff, were excluded from the current adjustment. An amount of Rs3.093 billion, already included in the tariff, was also deducted. Nepra will address this matter separately.
On August 04, 2023, K-Electric filed a quarterly adjustment request for April-June 2023, seeking a positive adjustment of Rs3.217/kWh. K-Electric calculated the price reset and indexation for June 2023 based on the MYT mechanism and requested provisional approval from July 2023 onwards, subject to final tariff determination for the next control period.
In a letter dated October 09, 2023, K-Electric informed Nepra that its write-off claims for FY 2023 had been verified by auditors. The company also requested end-of-term adjustments in line with the MYT determination of July 5, 2018, and the Mid-term Review determination of March 1, 2022.
K-Electric noted that the MYT for FY 2017-23 was applicable until June 30, 2023. The company has filed for a generation tariff and will submit the tariff for the Transmission, Distribution, and Supply segments after the finalization of the Investment Plan by Nepra. Therefore, unrecovered costs for April- June 2023, end-of-term adjustments, and write-off claims should be included in the tariff schedule under the new MYT starting July 01, 2023.
Nepra stated that any errors or omissions observed later, or adjustments not accounted for in this decision, may be addressed in subsequent periodic adjustments of the new MYT.
