Power Division seeks go-ahead of ECC to notify Rs 2.89 per unit increase for KE amid outages

Aftab Ahmed

Islamabad: Amid power outages in Karachi, Power Division seeks go-ahead of Economic Coordination Committee (ECC) to notify increase in tariff up to Rs 2.89 per unit for consumers of K-Electric on account of quarterly adjustments.

Sources told that Economic Coordination Committee (ECC) will meet on July 3 to consider the issue.

The K-Electric tariff is to be notified as per recommendation of the committee and notification will entail bringing the tariff of K-Electric at par with other distribution companies which will result in an increase of RS. 1.09 to Rs. 2.89kWh in tariff.

The Economic Coordination Committee (ECC) in March 04, 2020 on the summary submitted by the Power Division in the matter of quarterly adjustments of K-Electric Limited for the period from July 2016 to March 2019 and constituted a Committee under the Chairmanship of Minister for Power to examine the issue in a holistic manner and Submit a report thereon with viable recommendations to ECC for approval.

The Committee submitted their recommendations through summary before the ECC on March 18, 2020. “The recommended quarterly adjustment to the tune of Rs.4.877- being the differential between the schedule of tariff recommended by NEPRA for April – June 2019 and schedule of tariff earlier recommend by NEPRA and reflected in the KE Notified Tariff, be notified for each category of consumer, to the extent of bringing K-Electric consumers end tariff at par with what is currently in field for the Consumer of XWDISCOs (increase in rate of Rs. 1.09 to Rs. 2.89/kWh for various categories of consumers).

The committee recommended that any difference between the two rates be made available by way of subsidy, which shall amount to Rs 26 billion only. To the extent of earlier quarters, KE be intimated to file its revised claim to NEPRA for such quarterly adjustments after reflecting subsidy claims already processed pursuant which has not been accounted for the current determination and incremental rates for such adjustments be sought so that any such revenue requirement is recovered prospectively subject to any further subsidy (if any) as may be made available on uniform basis”.

The Economic Coordination Committee (ECO) approved the recommendations of the Committee in March 2020.Power Division is seeking guidance of ECC to notify increase in tariff for K-Electric especially in the wake of recent energy shortfall in K-Electric.

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