Nepra allows K-Electric to hike power tariff by average Rs1.40 per unit.

ISLAMABAD -- The National Electric Power Regulatory Authority (Nepra) Friday allowed K-Electric Limited to increase power tariff by average Rs 1.40 per unit under fuel charges adjustments (FCA) for the period from July 2016 to June 2019. In its decision in the matter of fuel charges adjustments for the period from July 2016 to June 2019 for K-Electric Limited, NEPRA has reduced the tariff for 15 months while it has been increased for 21 months. The decision will allow K-Electric Limited to transfer burden of Rs 18 billion to the company's consumers and it will be recovered within nine months starting January 2020. The average increase for all the 36 months is Rs 1.40 per unit. The increase shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units and agriculture consumers of K-Electric. It is hereby clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

Hearing on the adjustment was conducted by NEPRA in August 2019, where some participants opposed the raise. One of the commentators raised the issue of non-implementation of TOU during the MYT 2009-2016 and unless the previous accounts are settled, the instant adjustment requests should be deferred. The commentator further requested for K-Electric response on issues regarding interest on security deposits, bill collection charges, meter rent and application of ToU rates. The Authority noted that as per the plant wise generation statistic sheets, the actual auxiliary and actual sent out heat rates of KCCPP (220 MW) are lower than the Authority's allowed auxiliary/heat rates in the MYT 2017 determination of K-Electric. However, since the heat rate test of KCCPP has already been conducted by K-Electric in June 2019 as required in the MYT 2017 determination, therefore, any variation in this regard would be adjusted, once the Authority approves the heat rates of KCCPP based on the heat rate tests. Similarly, for the other power plants, the heat rates approved by the Authority in the MYT 2017 have been considered while working out the instant adjustments, and any variation in this regard would be adjusted, once the Authority approves the heat rate tests of the respective power plants.

The rates of gas and RLNG used by K-Electric are as per the rates approved by OGRA and charged by SSGCL to K-Electric for the...