FCA for April: Rs1.60 per unit increase in XWDiscos' power tariff likely.

The National Electric Power Regulatory Authority has hinted at allowing ex-Wapda Distribution Companies (XWDiscos) an increase of Rs1.60/unit in power tariff, while for the consumers of K-Electric it will be reduced by Re 0.05 per unit on account of monthly fuel charges adjustments (FCA) for April 2023. However, the regulator has reserved its judgment on the KE's another petition for a hike of Rs 5.170/ unit on account of the quarterly variations for the 3rd quarter (January 2023 to March 2023) of ongoing fiscal year.

In two separate hearings, presided over by Chairman NEPRA, Tauseef.H.Farooqi, the regulator has reviewed three petitions of XWDiscos and KE. The Central Power Purchasing Agency Guarantee Limited (CPPA-G) and K-Electric had sought NEPRA's nod for the transfer of an additional burden of Rs 43 billion to the electricity consumers on account of monthly fuel cost and quarterly adjustments.

In two separate petitions submitted with NEPRA, KE had sought a hike of Rs 5.170/ unit on account of the of quarterly variations for the 3rd quarter (January 2023 to March 2023) of ongoing fiscal year, while on account of monthly fuel charges adjustments, the company had sought a hike of Re 0.489/unit for the month of April.

In hearing on K-Electric's monthly fuel adjustment request for April, official of the NEPRA informed that in April, KE has generated electricity at Rs 23.03 per unit from its own resources. While the cost of electricity received from the national grid was Rs10.47/unit, the official added. After initial scrutiny of the data, the regulator has calculated that the electricity will be made Re0.05/unit cheaper for Karachiites. The consumers of KE will get a relief of Rs 720 million. The reduction will not be applicable to the lifeline customers of the company.

During hearing on the quarterly adjustment of Rs 5.170/unit, the regulator noted that despite the completion why one unit of Bin Qasim Power Plant was kept closed. Why did the LNG unit of the power plant remain closed? Chairman Nepra asked. Nepra's expressed displeasure over the shutdown of one unit of Bin Qasim Power Plant. Nepra has directed KE to submit a detailed report on the matter. NEPRA has reserved the judgment on the quarterly adjustment. The hike of Rs 5.170/unit, on the account...