News Report
National Electric Power Regulatory Authority (Nepra) may slash power tariff by Rs 2.59 per unit for consumers of K-Electric (KE).
The power regulator conducted a public hearing on Wednesday to consider a petition of KE to cut the power tariff.
KE pleaded to reduce power tariffs on account of fuel adjustment for the month of December 2021. Nepra hinted that per unit price of KE may go down by Rs 2.59 per unit.
The consumers in Karachi may get a relief of Rs 3 billion after the regulator hints to cut power tariff by Rs 2.59/unit.
NEPRA conducted a public hearing on KE’s petition for a reduction of Rs 1.79/unit in power tariff on account of monthly Fuel Charges Adjustment for the month of December.
Chairman NEPRA Tauseef.H.Farooqi presided hearing.
Karachi Electric Company requested to reduce the price of electricity by Rs1.79 per unit for December.
The K-Electric official informed during the hearing that the reason for the reduction in tariff was mainly due to less use of expensive Furnace Oil.
Nepra hints to cut KE per unit price
During the hearing Chairman NEPRA said that KE can make fuel arrangements from anywhere else other than Sui Southern Gas Company Limited (SSGC).
The KE’s CFO Amir Ghaziani said that they are also evaluating fuel arrangements from alternative sources.
Chairman NEPRA asked regarding the status of the Gas Supply Agreement(SGA) between K-Electric and Sui Southern Gas Company Limited. The CFO KE replied that negotiations are underway with Sui Southern Gas Company over the gas supply agreement.
During the hearing, NEPRA has done some adjustments in the calculations provided by KE and observed that decrease will be around Rs 2.59/unit instead of the demanded Rs 1.79/unit by the company in the petition.
The reduction in tariff will provide a relief of approximately Rs 3bn to KE’s consumers, the NEPRA official said.
NEPRA has completed the hearing and reserved the judgment. It is worth mentioning that for the month of November also, NEPRA had reduced the KE’s tariff under monthly FCA by Rs 0.76/unit.