Nepra allows hike in power tariff for March bills

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA), after holding public hearings on the petitions of the state-run power distribution companies and privatised K-Electric, on Tuesday hinted to allow DISCOs to charge an additional Rs0.48/unit and for Karachi-based utility to recover Rs1.71/unit from consumers in March bills.

Regarding January 2023’s Fuel Charges Adjustment (FCA) for Discos, the Central Power Purchasing Agency (CPPA), on behalf of these companies, had sought a Rs1.17/unit increase, while the authority allowed Rs0.48/unit.

Engineer Taseef H. Farooqui, Chairman Nepra, presided over the public hearing while Nepra members, Engineer Rafiq Ahmed Sheikh, Engineer Maqsood Anwar Khan, Muthar Niaz Rana and Amna Ahmed, were also present in the hearing. According to a preliminary check, the increase comes to Rs0.48/unit, Nepra said adding, however, the hike could go up to Rs0.99 per unit including previous adjustments which are still under scrutiny. It will be applicable for one month only, Nepra said.

This will be applicable to all customers of DISCOs except lifeline and electric vehicle charging stations, Nepra said. It will also not apply to K-Electric consumers, Nepra said adding that the authority will issue its detailed decision after further scrutiny of the data.

Regarding the monthly fuel charges of K-Electric for January 2023 and the second quarter adjustment of the financial year 2022-23, the regulator held another public hearing. Nepra indicated an increase of Rs 1.71 per unit on account of fuel adjustment for the month of January 2023. K-Electric had submitted a request for an increase of Rs2.70 per unit under the FCA for January 2023.

This will be applicable to all K Electric customers except lifeline and electric vehicle charging stations, Nepra said adding that the authority will issue its detailed decision after further scrutiny of the data.

K Electric had also submitted a request for a reduction of Rs7.36 per unit for the second quarter adjustment of FY2022-23. A KE spokesperson said that an increase of Rs2.69 paise per unit was requested in January 2023 fuel charges adjustment.

K-Electric had applied for a reduction of Rs7.366 per unit for the quarterly adjustment for October-December 2022, a spokesperson K-Electric said.

The positive FCA for January 2023 is primarily due to an increase in the price of power purchased from CPPA-G. The price of power purchased from CPPA-G in January 2023 has increased by 67 percent from December 2022, he said.

Under the uniform tariff policy implemented in the country, quarterly adjustments generally do not affect consumers, however, the final decision is made by the Ministry of Energy, Government of Pakistan and Nepra Authority, said the spokesperson of K-Electric.