Nepra allows K: Electric to charge additional Rs3.93 per unit in May bills.

ISLAMABAD -- National Electric Power Regulatory Authority (Nepra) Thursday allowed K: Electric to charge an additional Rs 3.9342 per unit in their next bills from the consumers, on account of monthly FCA for the month of March.

According to a decision released by NEPRA, the price hike will burden Karachiites by Rs 5.814 billion in their May bills. The tariff was increased owing to 177 percent high generation cost of the KE's own power plants in comparison with the electricity purchased from the national grid. Earlier public hearing was conducted by Nepra on the KE's petition. The regulator was informed that the average generation cost of KE's power plants was Rs 26.44 per unit which was 177 percent higher than Rs 9.54 per unit cost of the electricity purchased by the company from the national grid. In its petition, K: Electric had sought a hike of Rs 4.49 per unit in electricity price on account of fuel charges adjustment for the month of March 2023, however, after making several adjustments the regulator calculated that the hike will be Rs 3.9342 per unit.

It was further informed that the cost of generation through LNG was from Rs 30.10 to Rs 44.41/unit, RFO was from Rs 33.14/unit to Rs 33.67/unit, gas from Rs 8.72/unit to Rs 12.25 per unit. According to KE petition, Rs 4.49 per unit hike was claimed on the basis of variation in cost of fuel which was Rs 3.236 per unit, cost of fuel of power purchases was Rs 1.063 per unit, EMO and other adjustment Re0.191 per unit.

The Authority observed that K: Electric is being directed to provide CV test reports for both Tapal and Gui Ahmed Power Plants. KE has submitted CV test report of Tapal and Gui Ahmed from HDIP and SGS lab and used the average of the two reports in the FCA request. The Authority has considered the higher of the two CVs which has resulted in negative adjustment of Rs.748,353 and Rs. 1,799,057 for Tapal and Gul Ahmed power plants respectively. Regarding cost of energy purchased from CPPA: G during the current month, K: Electric has used the rate of Rs.9.8860/kWh, however, the Authority's approved fuel cost component, in the matter of XWDISCOs for the current month is Rs.9.5039/kWh.

In view thereof, while working out the instant FCA of K: Electric, rate approved by the Authority for XWDISCOS for the month under review has been incorporated for the energy purchased by K: Electric from CPPA: G during the...