Nepra to recover Rs3/unit from KE industrial consumers in two months

ISLAMABAD: In a revised decision issued on Wednesday, the National Electric Power Regulatory Authority (Nepra) announced the recovery of Rs3 per unit from industrial consumers of K-Electric (KE) within a two-month period.

On January 1, 2019, the federal government approved a relief package, lowering industrial consumers’ rates by Rs3 per unit for the period July-December 2019, inclusive of future FCAs. The government was responsible for reconciling any payment discrepancies between industrial consumers and the special relief package as part of subsidy payment rationalization.

Nepra’s decision, following the Supreme Court’s judgment on January 19, 2023, was officially released on October 31, 2023. The Supreme Court ruled that the government has the prerogative to withdraw subsidies.

The decision was communicated to the federal government for notification in accordance with Section 31 of the Nepra Act. However, the Ministry of Energy (MoE), in a letter dated November 10, 2023, informed Nepra that the authority had addressed the case at the request of K-Electric to adjust the tariff for the period from July 2019 to December 2019.

The Nepra noted that the Ministry of Energy requested clarification on the control/implementation period in the decision. In response, Nepra clarified that the tariff adjustment period spans six months, from July 2019 to December 2019, and due to delays, the recovery should be implemented within a two-month period from the date of notification of the decision.

The Nepra decision has been forwarded to the federal government for notification under Section 31 of the Nepra Act.

Previously, the federal government had introduced an industrial relief package for July-December 2019, applicable during both peak and off-peak hours. However, the concession for off-peak hours was terminated by the government on January 22, 2020.

Following the government’s decision, K-Electric initiated the collection of the subsidy amount. Subsequently, the subsidy collection was halted when it faced legal challenges. Now, in light of the Supreme Court’s decision, the Nepra has issued a revised decision to recover Rs3 per unit from industrial consumers of K-Electric within a two-month timeframe.