News Report
There is good news for electricity consumers in Karachi as the power regulator on Thursday slashed power tariff by Rs 2.59 per unit for consumers K Electric.
National Electric Power Regulatory Authority (Nepra) announced to cut power tariff on account of monthly fuel adjustment for the month of December 2021.
It has issued a decision in this regard.
NEPRA has issued its decision regarding K-Electric Fuel Charges adjustment for the month of December 2021.
The power regulator had held a public hearing on February 02, 2022. However, it had reserved a decision.
According to a decision issued here, the Authority has approved to cut power tariff by Rs. 2.5953/kWh. It will provide relief to the consumer’s worth Rs. 3,038 million to K electric consumers in bills of March 2022.
Earlier, NEPRA had allowed K Electric (KE) to raise tariff by Rs 3.7571 per unit on the account of Fuel Charge Adjustment for the month of September.
The consumers of K Electric will pay an extra Rs 7.22 billion in their December electricity bills.
K-Electric had sought an increase of Rs 3.454 per unit in power tariff under fuel charges adjustments (FCA) for the month of September 2021.
On November 3, 2021, NEPRA had conducted a Public hearing on the KE petition.
K-Electric also submitted that the major reason for the high FCA for September 2021, is due to increase in fuel prices of RLNG, RFO, and Coal.
After hearing and going through the data NEPRA has allowed k electric to increase Rs 3.7571 per unit power tariff.
It will burden the consumers with an extra cost of Rs 7.22 billion.
According to the NEPRA notification, the increase shall be applicable to all the consumer categories except lifeline consumers.
It will reflect in the billing month of December 2021.
The Authority observed that KE did not operate both KGTPS and SGTPS to their full capacities.
It had also withdrawn less energy from efficient sources. Similarly. it operated KCCPP on HSD.
Nepra also observed the K-Electric had drawn lesser energy from NTDC during certain hours.
The company did without reducing generation from expensive plants connected to its network.
KE has failed to provide satisfactory response amounts to Rs.19.14 million. The regulator withheld an amount of Rs. 19.14 million from the claim of K-Electric.
K-Electric in response stated that it has engaged the Ministry of Energy, Petroleum Division, and Power Division.
It also held a meeting with SSGC to resolve the issues of gas pressure.
K-Electric had suggested holding a joint meeting with all the stakeholders involving NEPRA.
In written comments, the Karachi Chamber of Commerce said that K-Electric‘s own generation is expensive.
K-Electric generates energy from old and inefficient plants, which need to shut down.
It called for improving the generation mix to reduce the tariff, shifting away from dollar-pegged generation in favor of Solar, Wind, and Hydel generation.
The addition of K-Electric’s 900 MW RLNG based BQPS-III, as well as renewable energy, may reduce the cost of electricity.
It also called for barring KE from passing the impact of inefficient power plants to the consumers.
