Nepra Slashes Power Tariff By Rs4.12 Per Unit For Consumers Of K-Electric.

ISLAMABAD -- National Electric Power Regulatory Authority (Nepra) has slashed the power tariff by Rs 4.12 per unit for consumers of K-Electric (KE) on account of fuel adjustment for month of July 2012.

NEPRA decision will provide a relief of Rs 7.402bn to Karachiites in their next monthly electricity bills, said a decision issued here by NEPRA.

In its petition, K-Electric had requested reduction of Rs 3.48/unit in power tariff on account of monthly FCA of July, however, NEPRA after making several adjustments reduced it by Rs 4.1171/unit. NEPRA had conducted a public hearing on August 31. It will be applicable to all consumers of KE except life line users.

On the point of consumption of indigenous gas in units 5 and 6 of BQPS-I instead BQPSII, which is more efficient, K-Electric submitted that during July 2022, it was provided indigenous gas supply of 10 mmcfd out of total gas quota.

On the issue of fully utilizing available LNG in BQPS-III, and only the rest should have been consumed in BQPS-II, K-Electric submitted that it is getting RLNG from two sources including SSGC and PLL.

SSGC provides gas to KE for power plants other than BQPS-III and SSGC gas cannot be consumed at BQPS-III for which PLL supply has been dedicated. Technically SSGC gas at 4-6 bar pressure cannot be utilized at BQPS-III which requires high pressure gas at 45 bar, KE official said.

Regarding details of the disputed amount of Rs. 2,119 million claimed by PLL, K-Electric submitted that PLL in its invoice for the billing cycle for the period from 21, Jul 2022 to 31, Jul, 2022 has included an amount Rs 2,116 million on account of take or pay and Rs 3 million on account of LPS.

As per the agreement, in case K-Electric is unable to off-take the delivery of gas, PLL shall make reasonable efforts to sell such gas to third party and adjust the cost charged to K-Electric on net proceeds basis as recovered from the alternate buyer. Accordingly, PLL was already able to sell the said quantity to SNGPL at OGRA notified RLNG price, as applicable and therefore the amount on account of take or pay has been disputed currently.

On the point raised during the hearing regarding no cargo purchased by PLL during the current month, K-Electric has submitted that with respect to USD rate used by PLL for RLNG in the month of July-22 i.e. USD 24.4485/MMBTU, since there was no cargo of PLL in July-22, the gas was provided from cargo inventory retained during June-22 by PLL and hence...