Little relief for Karachiites NEPRA allows 2.45 per unit cut in #K_Electric tarif

Karachiites to get relief of Rs4.11b in their next electricity bills

Karachiites to get relief of Rs4.11b in their next electricity bills


Karachiites will get a relief of Rs 4.114 billion in their next electricity bills as National Electric Power Regulator Authority has allowed Rs 2.45 per unit cut in K-Electric’s power tariff on account of monthly fuel charges adjustments.

In a public hearing on the KE’s petition for monthly fuel charges adjustments for October, initially NEPRA had calculated a reduction of Rs 2.15/unit, however after detail analysis of the KE data and making adjustments, the regulator has approved a reduction of Rs 2.45/unit in tariff. For the month of October, K-Electric had requested the regulator to allow the company to return Rs1.883/unit back to power consumers on account of monthly FCA. However, the regulator after initial scrutiny had calculated a reduction of Rs 2.15/unit on account of monthly FCA. 


In its decision on the petition, released here, the regulator noted that for the cost of energy purchased from CPPA-G during the current month, K-Electric has used the rate of Rs.9.4162/unit, however, the Authority’s approved fuel cost component, in the matter of XWDISCOs for the current month is Rs.8.8492/unit. In view thereof, while working out the instant FCA of K-Electric, rate approved by the Authority for XWDISCOS for the month under review has been incorporated for the energy purchased by K-Electric from CPPA-G during the month under review. This has resulted in decrease in total fuel cost by around Rs.438 million.


It is pertinent to mention here that KE vide its FCA claim for October 2022 had requested for the release of Rs. 700 million, withheld on account of EMO violations over the period June 2021 to August 2022. The Authority after detailed deliberation has decided to release a total of Rs. 184.63 million on account of previous adjustments and shortage of HSD. K-Electric had requested an amount of Rs.381.55 million for operation of KCGPP on HSD during October 2022. The Authority for the purpose of instant adjustment has considered the same amount i.e. Rs.381.55 million, as requested by K-Electric, based on heat rate of 7,921.728 btu/kWh determined by the Authority vide decision dated August 4, 2022, with same CV of HSD and auxiliaries as reported by K-Electric. According the KE, the negative FCA for October 2022 is primarily due to a decrease in prices of RLNG, furnace Oil, and power purchased from CPPA-G. The price of RLNG in October 2022 decreased by 16% from September 2022. The price of furnace oil in October 2022 has decreased by 6% from September 2022, and the price of power purchased from CPPA-G in October 2022 has decreased by 6% from September 2022. 


According the NEPRA, K-Electric had generated electricity from high speed diesel at Rs 45.43/unit and from furnace oil at Rs 40/unit. The NEPRA official said that violation of merit order resulted in an additional burden of Rs 1.6b on the power consumer in October. This adjustment/relief would be available to all the user categories of KE except lifeline power consumers, domestic consumers consuming up to 300 units, agri consumers, and electric vehicle charging stations (EVCS).


The Nation, 15 Dec, 2022

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