KE bills in December 2022 down by Rs 9.97 per unit

KE bills in December 2022 are set to decrease by Rs 9.97 per unit on account of fuel and quarterly adjustments.

As a result of monthly fuel and quarterly adjustments, the power tariff for K-Electric (KE) customers will drop by Rs 9.97 per unit.

Wednesday, the National Electric Power Regulatory Authority (Nepra) announced that consumers will pay Rs 2.15 less per unit in October 2022 because of fuel adjustment.

It also said that there would be another decrease of Rs 7.83 per unit because of an adjustment for the first quarter of the financial year 2022-23.

The power regulator held a public hearing to decide whether or not to change KE’s proposed changes to its monthly fuel adjustment and quarterly adjustments.

In a petition, KE asked for the fuel adjustment for October 2022 to lower the tariff by Rs 1.88 per unit.

But Nepra said that the price would go down by Rs 2.15 per unit after looking over the data sent by the power utility.

During the public hearing, three issues were discussed. One of them was whether or not the required fuel price adjustment was fair.

Second, it was decided if the requested quarterly change was reasonable.

The third point was whether K-Electric had followed the merit order when sending power to its power plants and buying power from outside sources.

It was noted that KE power generation was the most expensive, costing up to Rs 45.43 per unit when high-speed diesel was used.

At its cheapest, BQPS 3’s electricity production cost Rs 20.32 per unit.
The average price of power from furnace oil was Rs 40.83 per unit, RLNG was Rs 27.88 per unit, and power from indigenous gas was Rs 7.26 per unit.

In October 2022, the average monthly cost of electricity from all sources was Rs 32.96.

But the average price of electricity from sources outside of India was Rs 12.01 per unit. It bought electricity from CPPAG at 8.85 rupees per unit.

But Lotte Chemical, Tappal, and Gul Ahmed sold electricity at the most expensive rate of Rs 33.52, Rs 31.47, and Rs 32.52 per unit, respectively.

Compared to September 2022, prices for furnace oil dropped by 7%, RLNG from SSGC by 16%, RLNG from PLL by 9%, and high-speed diesel by 11%.

During the hearing, interveners brought up the issue of sending gas from Bin Qasim 3 to other power plants owned by KE.

KE officials said they had built the infrastructure needed to use gas given to Bin Qasim 3 by third parties, such as PLL.

But SSGC objected and said that if the plant had technical problems, the gas could be sent to other plants.

They said that, for technical reasons, KE could send Pakistan LNG Limited’s (PLL) RLNG to other plants if it was cheaper than other fuels.

Intervenors also talked about the upcoming extension of K-electricity Electric’s supply.

They said that the Tapal and Gul Ahmed plants were producing very expensive electricity that they were selling to KE.

So, they said that they were charging high prices because of the cost of fuel, payments for capacity, maintenance, and other costs that should be lowered to lower electricity rates.Rs 5.12 per unit cut in tariff in KE electricity bills in November 2022

Chairman Nepra said that these plants would give KE electricity without a “Take or Pay” clause.KE Duplicate Bill | How To Check Online

This will keep capacity payments from being passed on to consumers.
Now, these plants have asked Nepra for an extension, and KE has given their permission.

Chairman Nepra said that they wanted to shut down all of the old power plants and didn’t want to get more time.

But they wanted to give an extension because the demand for electricity is highest in the summer and even in October.