Nepra Allows Rs3.55 Per Unit Hike In K-Electric's Electricity Tariff.

ISLAMABAD -- National Electric Power Regulatory has allowed K-Electric (KE) to increase power tariff by Rs 3.55 per unit on account of quarterly adjustments for the January-March quarter of 2021-22.

In its decision on the KE's petition for a hike of Rs.3.892/unit, on account of quarterly adjustments for the quarter of January to March, NEPRA has allowed an increase of Rs 3.55/unit after making various adjustments. The NEPRA decision for an increase of Rs 3.55/unit in tariff has been communicated to the federal government for notification.

Pursuant to the provisions of Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997, and as per the mechanism for monthly, quarterly and annual adjustments provided in the tariff determination of K-Electric Limited dated July 05, 2018, the authority has to review and revise the approved tariff on monthly, quarterly and annual adjustments.

For the quarter ending March 2022 KE initially requested Rs. 4.521/unit hike in tariff, however subsequently KE revised its request to Rs.3.892/unit after adjusting NEPRA's FCA decision for February and March 2022 issued on May 6, 2022 and May 27, 2022 respectively.

As per the mechanism provided in the determination, impact of change in KE's own generation fuel cost component due to variation in fuel prices, generation mix and volume shall be passed on to the consumers directly in their monthly bills in the form of fuel charges adjustment (FCA). Similarly, impact of change in the fuel component of Power Purchase Price (PPP) due as to variation in fuel prices and energy mix shall also be passed on to the consumers through monthly FCA. However, the impact of monthly variations in K-Electric own generations fuel cost component as well power purchase price to the extent of targeted T and D losses, not taken into account in the monthly FCAs, has to be adjusted on quarterly basis. In addition, the monthly variations in the variable O and M and fixed costs of the PPP, as allowed by the Authority, are required to be adjusted on quarterly basis.

The impact of these variations is to be worked out based on targeted units to be sold in the next quarter and to be adjusted in the SoT of K-Electric. The actual payments in respect of WWF, 'WPPF etc. to the IPPs being passed through are to be adjusted on yearly basis upon production of verifiable documentary evidence. Pursuant to notification of the determined MYT, K-Electric filed its...