Nepra allows another increase of Rs4.90 per unit in K-Electric tariff.


ISLAMABAD -- In less than a week time, National Electric Power Regulatory Authority (Nepra) has allowed another increase of around Rs 4.90 per unit in the electricity prices for K-Electric on account of quarterly adjustments.

In its decision released here, the Nepra said that the Authority based on the information, data and record provided by K-Electric, had approved the quarterly adjustment claims of K-Electric for the period from Jul.-Sep. 2016 to Jan.-Mar. 2019.

If approved by the federal government, the decisions will allow K-Electric to collect Rs 106 billion from the power consumers in Karachi.

It is pertinent to mention here that on December 27, 2019, also the National Electric Power Regulatory Authority (Nepra) had allowed K-Electric Limited to increase power tariff by average Rs 1.40 per unit under fuel charges adjustments for the period from July 2016 to June 2019.

The tariff has been increased to recover Rs 106 billion from the consumers for total 11 quarterly adjustments. The revised tariff works out as Rs.17.79 per kWh and the impact of total amount being allowed is around Rs.106 billion. The total amount would be recovered from the consumers in electricity bills for coming months. The electricity price has jumped from 12.81 per unit to 17.69 per unit registering an increase of around Rs. 4.8 per unit, Nepra official said.

The major reason for increase in power tariff was use of RLNG by K-Electric, having additional impact of Rs 24 billion. The other reason was increase in prices of gas from reference price of Rs.400 per MMBTU to Rs.629 per MMBTU. Moreover, increase in price of Furnace oil (FO) was also another reason as its price went up from reference price of Rs.27,000 per metric ton (MT) to around Rs.70,000/MT. Increase in O and M and capacity cost of IPPs owing to indexation and exchange rate variation also led to hike in electricity rates.

Reconsideration Request in the matter of K-Electric MYT 2017 for the period from FY 2016-17 to FY 2022-23 (07 Years) was decided by the Authority on July 05, 2018, whereby an average sale rate of Rs.12.8172 per kWh was approved.

K-Electric challenged the decisions of the Authority in the Sindh High Court (SHC), whereby, the SHC granted stay order regarding notification of the determined tariff...

To continue reading