KE allowed to collect additional Rs12.7/unit from consumers

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has allowed the K-Electric to collect an additional Rs 12.6818 per kWh from the power consumers on account of quarterly adjustments for April-June 2022.

On August 31, the regulator held a public hearing on a petition of the K-Electric where it sought Rs 14.533/unit upward adjustment, but the Nepra, after reviewing the company’s data, allowed Rs 12.6818/unit that will be applicable in the quarter July-Sept 2022. However, interestingly, the variation may not affect the consumers due to the government’s uniform tariff policy applicable across the county.

Under the tariff mechanism, quarterly tariff adjustments are made on account of variations in the power purchase price, capacity charges, variable operation and maintenance costs and use of system charges including the impact transmission and distribution losses, which are built into the base tariff by the federal government.

The K-Electric spokesman, meanwhile said: “The impact of quarterly adjustments is usually not passed to consumers under the uniform tariff policy applicable across the country. However, the final decision rests with the Federal Ministry of Energy, the government of Pakistan and the Nepra.”

It may be noted that in line with the mechanism given in the KE’s multi-year tariff, changes in fuel prices, generation and power purchase mix are passed along with certain annual adjustments. The authority, in its decision, said the instant decision was being intimated to the federal government, prior to its notification in the official gazette as per Section 31(7) of the NEPRA Act.

On October 14, the regulator directed the company to reimburse Rs 4.8862/unit to consumers in October 2022 bills on account of fuel charges adjustment (FCA) for August 2022. Its impact is around Rs 8.5 billion. This adjustment/relief is available to all KE user categories except lifeline power consumers, domestic consumers consuming up to 300 units, agricultural consumers and electric vehicle charging stations. In its earlier decision for July’s FCA, the Nepra had asked the KE to refund Rs 4.117 per unit to consumers in their September 2020 bills and it was being paid back and had a total impact of Rs 7.4 billion on the company.

For June 2022’s FCA, the Nepra had allowed the K-Electric to collect an additional Rs 11.102/ unit in electricity bills for August and September 2022, which has a combined impact of Rs 25 billion to be collected. For May’s FCA, the regulator had allowed the KE to charge an extra Rs 9.518/unit in two months, including Rs 2.6322/unit in July and Rs 6.886/unit in August bills.