Govt Seeks Rs 10.32 per Unit Increase for KE Consumers

The Federal Government has sought NEPRA’s nod for a Rs 10.32 per Unit Increase for KE Consumers in power tariff, on account of three quarterly adjustments of FY 2022-23, for the consumers of KE, in order to maintain uniform tariffs across the country.

In order to maintain uniform tariffs across the country, NEPRA shall determine the application of quarterly tariff determinations (QTAs) of XWDlSCOs on KE consumers by way of tariff rationalization.Check KE Duplicate Bill |K-Electric Duplicate Bill 2023

NEPRA shall determine the same tariff rationalization for K-Electric consumers as determined for XWDISCOs consumers, with the same application period, keeping in view the financial sustainability of the sector and uniform tariff policy of the Federal Government.

The energy ministry said in a motion filed with respect to the recommendation of consumer end tariff for K-Electric and Policy Guidelines for uniform quarterly adjustments under sections 7 &31 of the NEPRA Act, 1997 read with rule 17 of NEPRA Tariff (Standards and Procedure) Rules, 1998.

In the motions submitted with NEPRA the Ministry of Energy has sought NEPRA approval for the determination of uniform consumer-end tariff for K-Electric and requested to pass on the burden of three Quarterly Adjustments to the KE’s consumers with a total impact of Rs 10.32/unit.

The Adjustments include the 2nd quarter, 3rd quarter, and 4th quarter of the Fiscal Year 2022-23. For the 2nd quarter, the increase will be Rs 0.4689/unit for the 3rd quarter up to Rs.4.4547/unit and for the 4th quarter, the hike of Rs 5.40/unit has been requested.

The MoE in the Motion has requested to apply periodic adjustments for the 2nd quarter of FY 2022-23 for XWDISCOs of Rs.0.4689/kWh, on the consumers of K-Electric in order to maintain uniform tariffs across the country.

The MoE has requested to issue separate SoT for KE with the prospective application of applicable uniform rates after incorporating tariff rationalization.

The adjustment shall be applicable on the consumption of April, May & June 2023, to be recovered from consumers in Sep., Oct. & Nov.2023, respectively.

The MoE has also submitted Policy Guidelines for the uniform application of quarterly adjustments on XWDISCOs and K-Electric consumers.

Based on the Policy Guidelines, the MoE has requested NEPRA to reconsider its decision dated 22.05.2023 and accordingly issue separate SoT for KE with the prospective application of applicable uniform rates, after incorporating tariff rationalization requested in Motion dated 17.03.2023 (Rs.1.4874 to Rs.4.4547/kWh for different consumer categories).

The adjustment shall be applicable on the consumption of Feb. & March 2023, to be recovered from consumers in Sep., & Oct. 2023 respectively.

Further, the Ministry of Energy, during a hearing in the matter of the 4th quarterly adjustment of Rs 5.40/unit for XWDISCOs for the FY 2022-23, held on 23.08.2023, submitted to apply the same on K-Electric consumers as well, in light of the afore referred policy guidelines.

NEPRA will hold a public hearing on the Ministry of Energy motions, on 11th September 2023.

K-Electric’s spokesperson clarified that the Power Division has filed the latest petition with NEPRA for quarterly tariff adjustments, in order to maintain equal rates of electricity charged to customers in their bills across the country.

Pakistan’s power sector operates in a regulated environment and the taxes and charges in customer bills are determined by the Government. A formal notification explaining the changes and their application on bills will be issued after the hearing – scheduled for 11th September – is completed. These changes will apply to KE customers as per the governing laws and regulations.