National Electric Power Regulatory Authority (NEPRA) has approved a colossal Rs7.82 per unit increase in the power tariff for the consumers of K-Electric on account of quarterly adjustment for the quarters ending September 2021 and December 2021.
As per details, NEPRA has jacked up power price by Rs7.82 per unit for the consumers of K-Electric in the matter of quarterly adjustments of K-Electric Limited for the quarters ending September 2021 and December 2021 and sent the decision of hike to the federal government for intimation and action, if any, by the federal government under Proviso (ii) of Section 31(7) of NEPRA Act, before its notification by NEPRA pursuant to the said Proviso of Section 31(7) of NEPRA Act, 1997.
'The instant decision is being intimated to the Federal Government, prior to its notification in the official Gazette as per Section 31(7) of the NEPRA Act,' reads NEPRA decision.
According to the NEPRA decision, pursuant to notification of the determined Multi Year Tariff (MYT), K-Electric filed its quarterly adjustments requests on account of Power Purchase Price (PPP), indexation of Operation and Maintenance costs, adjustment of Transmission and Despatch losses etc. for the quarters ending September 2021 and December 2021 along with supporting documents. And, for the quarter ending September 2021 K-Electric (KE) initially requested Rs4.944/kWh, however subsequently KE revised its request to Rs.5.182/kWh vide letter dated December 16, 2021.
Since the impact of any adjustments has to be made part of the consumer end tariff, therefore, the Authority (NEPRA), in order to provide an opportunity of hearing to all the concerned and meet the ends of natural justice, decided to conduct a hearing in the matter.
The hearings were accordingly held on January 03, 2022 and March 01, 2022, through Zoom.
It is pertinent to mention that NEPRA on 2nd June 2022 had approved the increase of Rs7.9078 per unit for all power distribution companies (DISCOs) except K-Electric mainly due to increase in fuel prices, capacity cost and impact of rupee devaluation and asked the government to issue notification to this effect.
DISCOs including Multan Electric Power Company (MEPCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Quetta Electric Supply Company (QESCO), Peshawar Electric Power Company (PESCO) and Tribal Electric Supply Company (TESCO) filed multi-year tariff petitions for the FY 2020-21 to FY 2024-25 while Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO) and Faisalabad Electric Supply Company (FESCO) filed annual adjustment/indexation request under the already allowed multi-year tariff.