Nepra allows K-Electric to return Rs8.59b to consumers in Nov bills.

ISLAMABAD -- National Electric Power Regulatory Authority (Nepra) on Friday allowed K-Electric to return Rs 5.13 per unit (Rs8.59 billion) to consumers under monthly fuel charges adjustment (FCA) for September.

Meanwhile, in a separate decision notified by the regulator, NEPRA has increased the KE tariff by Re 0.51/unit on account of quarterly adjustments for the January-March quarter of 2021-22. The Authority has accepted the request of the federal government to issue a separate SoT for the allowed increase of Rs.0.5087/unit for all categories of consumers except life line, said a notification issued here. The increase will be applicable for a period of three months November 2022, December 2022 to January 2023, on the consumption of September 2022, October 2022 and November 2022 respectively, said the notification.

Earlier, after initial assessment, NEPRA had indicated a reduction of Rs4.70/unit in tariff for KE on account of monthly fuel charges adjustment for September, however after detailed evaluation the regulator has notified a reduction of Rs 5.13/unit.

A notification issued here by NEPRA said that initially in its tariff petition KE had sought a reduction of Rs 4.62/unit on account of FCA for September 2022. However, after the assessment of data, Nepra has allowed a reduction of Rs 5.13/unit. The decision will allow KE to return Rs 8.59 billion to the consumers.

In its decision NEPRA said that regarding cost of energy purchased from CPPA-G during the current month, KE has used the rate of Rs. 10.1160/unit, however, the Authority's approved fuel cost component, in the matter of XWDISCOs for the current month is Rs.9.9933/kWh. This has resulted in decrease in total fuel cost by around Rs.95 million.

The Authority has observed that a financial impact of Rs 32 million was incurred on account of underutilization of economical plants while operating Unit 1 of BQPS-I at a minimum load of 100 MW instead of 90 MW. In response, KE informed that the said Unit cannot be loaded below 100 MW since its high pressure heater is out of service. Subsequently, the response provided by KE has not been accepted due to different reasons.

KE was supposed to repair the damaged high pressure heater when it got damaged in 2019. However, KE...

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