ISLAMABAD-The National Electric Power Regulatory Authority has hinted at allowing ex-Wapda Distribution Companies (XWDiscos) an increase of Rs1.60/unit in power tariff, while for the consumers of K-Electric it will be reduced by Re 0.05 per unit on account of monthly fuel charges adjustments (FCA) for April 2023. However, the regulator has reserved its judgment on the KE’s another petition for a hike of Rs 5.170/ unit on account of the quarterly variations for the 3rd quarter (January 2023 to March 2023) of ongoing fiscal year.
In two separate hearings, presided over by Chairman NEPRA, Tauseef.H.Farooqi, the regulator has reviewed three petitions of XWDiscos and KE. The Central Power Purchasing Agency Guarantee Limited (CPPA-G) and K-Electric had sought NEPRA’s nod for the transfer of an additional burden of Rs 43 billion to the electricity consumers on account of monthly fuel cost and quarterly adjustments.
In two separate petitions submitted with NEPRA, KE had sought a hike of Rs 5.170/ unit on account of the of quarterly variations for the 3rd quarter (January 2023 to March 2023) of ongoing fiscal year, while on account of monthly fuel charges adjustments, the company had sought a hike of Re 0.489/unit for the month of April.
In hearing on K-Electric’s monthly fuel adjustment request for April, official of the NEPRA informed that in April, KE has generated electricity at Rs 23.03 per unit from its own resources. While the cost of electricity received from the national grid was Rs10.47/unit, the official added.  After initial scrutiny of the data, the regulator has calculated that the electricity will be made Re0.05/unit cheaper for Karachiites. The consumers of KE will get a relief of Rs 720 million. The reduction will not be applicable to the lifeline customers of the company.
During hearing on the quarterly adjustment of Rs 5.170/unit, the regulator noted that despite the completion why one unit of Bin Qasim Power Plant was kept closed. Why did the LNG unit of the power plant remain closed? Chairman Nepra asked. Nepra’s expressed displeasure over the shutdown of one unit of Bin Qasim Power Plant. Nepra has directed KE to submit a detailed report on the matter. NEPRA has reserved the judgment on the quarterly adjustment. The hike of Rs 5.170/unit, on the account of quarterly adjustments, will burden the KE’s consumers, by Rs 18. 298 billion and the consumers will pay the amount in three months.  
Chairman NEPRA also asked for KE’s plan for future cheap power generation. The people of Karachi are only getting cheap electricity from the federal government, chairman Nepra remarked.  While hearing on the third petition of the Central Power Purchasing Agency Guarantee Limited (CPPA-G) for a hike of Rs 2/unit in electricity tariff on account of monthly fuel charges adjustment (FCA) for April 2023, the regulator noted that the increase will be Rs 1.60/unit. The decision will burden the consumers with an additional burden of 15.6 billion. The hike will not be applicable to lifeline customers. Nepra authority will issue detailed decision later.
In its petition submitted to NEPRA on the behalf of power distribution companies (XWDISCOs), the CPPA-G said that for the month of April the reference fuel charges from the consumers were Rs 8.3875/unit, while the total cost per unit, including previous adjustments, was Rs 10.3975/unit.
The CPPA-G has requested that it should be allowed to pass the increase of Rs2.0100/unit to the consumers. The CPPA-G demand will have an impact of approximately Rs 23.60 billion.
The hearing was informed that in April 16.06% less electricity was generated from water, while 10.23% less electricity was generated from coal. Around 12.08% less electricity was generated from imported coal and 3.98% less than local coal, the official added. Due to reduced demand for electricity, coal power plants on merit order were becoming expensive, the CPPA officials said. 
Nepra official said that due to violation of merit order the consumers have incurred an additional burden of 3.72 billion. Additional LNG was supplied to power sector despite low demand, the official added. The CPPA official said that 4 billion units less electricity was generated in April as compared to last year.