Rs 5.12 per unit cut in tariff in KE electricity bills in November 2022
The consumers are going to enjoy relief of Rs 5.12 per unit in KE electricity bills in November 2022 on account of fuel adjustment for the month of September 2022.
The National Electric Power Regulatory Authority (Nepra) decided on Friday to lower the electricity rate for K-Electric (KE) customers by Rs 5.12 per unit due to a fuel adjustment for the month of September 2022.
The power regulator reported that KE had asked for an Rs. 4.622/kWh reduction in the power rate due to a monthly fuel adjustment. Consumers to pay Rs 0.51 extra in KE electricity bills in December 2022
On October 25, 2022, Nepra held a public hearing.
According to the energy regulator, a decision had been made to lower the power tariff for KE consumers by 5.126/kWh in September 2022 due to fuel adjustments.
K-Electric must include the September 2022 fuel charge adjustment in the November 2022 billing cycle.
All consumer categories, with the exception of lifeline consumers, domestic consumers consuming up to 300 units, agricultural consumers, and K-EVCS Electric’s (Electric Vehicle Charging Station) consumers, must comply.
The regulator made it clear that domestic customers with Time of Use (ToU) meters are also eligible for the reduction in power rates due to monthly fuel adjustments, regardless of their level of consumption.
In a decision, the power regulator stated that it had conducted an internal analysis of the information provided by K-Electric for the month in order to determine the financial impact of the deviation from EMO.
The authority has noted that while operating Unit 1 of BQPS-I at a minimum load of 100 MW instead of 90 MW, economical plants were underutilized, resulting in a financial impact of Rs. 32 million.
As a result of the said unit’s malfunctioning high-pressure heater, KE responded that it cannot be loaded below 100 MW.
Due to the fact that KE was supposed to fix the damaged high-pressure heater when it occurred in 2019, the response offered by KE was subsequently rejected.
The high-pressure heater was not replaced by KE after 2019, according to the power regulator, who also noted this.
Additionally, it was thought that the high-pressure heater repair ought to have been done within the O&M budget that KE was given under the multiyear tariff (MYT).
The delay in BQPS-commissioning III’s is an additional factor to take into account.
Unit 1 operation at BQPS-I would have been reduced and this financial impact could have been avoided if BQPS-III had been commissioned on time, in December 2019, as planned.
In light of this, the power regulator deducted Rs. 32 million from KE’s claim for fuel adjustment costs for the month of September 2022.
