Nepra Approves Rs5.27 Per Unit Hike In Power Tariff For KE's Consumers.

ISLAMABAD -- Karachiites will have to pay an additional Rs5.2718/unit in their July bills, on account of monthly fuel charges adjustments (FCA) for April, having an impact of Rs 11.8 billion on the power consumers.

National Electric Power Regulatory Authority Friday notified an increase of Rs 5.2718 per unit in power tariff for K-Electric on account of monthly fuel charges adjustments (FCA) for April 2022.

Initially, the K-Electric had sought a hike of Rs4.86/unit under monthly fuel cost adjustment (FCA) with a revenue estimate of Rs9.353 billion, however later it had upward revised the demand to Rs 5.307/unit, arguing that the increase was on account of higher tariff of national grid and furnace oil cost for its own power generation.

In its decision notified here NEPRA noted that the power purchase agreement was signed between NTDCL and K-Electric on January 26, 2010 for five years for sale/purchase of 650MW on basket rates. Subsequently, a decision was made by the Council of Common Interest (CCI) in its meeting held on November 08, 2012 with respect to the modalities for withdrawal of electric power from NTDCL by the petitioner, wherein it was decided to reduce the supply of energy by 300MW from NTDCL to K-Electric. However, the aforementioned decision of the CCI has been impugned by way of suits/petitions by K-Electric in the High Court of Sindh at Karachi. No new agreement has been signed between K-Electric and NTDCL till date, and K-Electric is continuing to draw energy from the National Grid, which at present is around 1100MW.

K-Electric had requested an amount of Rs.2.323b for operation of KCCPP on HSD during April 2022. The Authority for the purpose of instant adjustment has provisionally considered the same amount i.e. Rs.2,323 million.

The Authority observed that K-Electric has been directed to provide CV test reports for both Tapal and Gul Ahmed. For the purpose of current month FCA, the supplier's CVs have been considered for adjustment of Tapal. This has resulted in provisional negative adjustment of Rs.4.32 million for Tapal.

Regarding cost of energy purchased from CPPA-G during the current month, K-Electric has used the rate of Rs. 10.664/kWh, however...