Nepra hints at Rs2.59/unit cut in KE tariff

ISLAMABAD - Karachiites are likely to get a relief of Rs3 billion in electricity bills as National Electric Power Regulatory Authority(NEPRA) has hinted at decrease of Rs 2.59/unit in K-Electric’s tariff on account of monthly fuel charges adjustment (FCA) for December.
NEPRA conducted public hearing on KE’s petition for a reduction of Rs 1.79/unit in power tariff on account of monthly fuel charges adjustment for the month of December. The hearing was presided over by Chairman NEPRA Tauseef.H.Farooqi.
Karachi Electric Company requested to reduce the price of electricity by Rs1.79 per unit for December. The K-Electric official informed during the hearing that the reason for reduction in tariff is mainly due to less use of expensive furnace oil.
During hearing, Chairman NEPRA said that KE can make fuel arrangements from anywhere else other than Sui Southern Gas Company Limited (SSGC). KE’s CFO Amir Ghaziani said that they are also evaluating fuel arrangements from alternative sources. Chairman NEPRA asked regarding the status of gas supply agreement between K-Electric and Sui Southern Gas Company Limited. The CFO KE replied the negotiations are underway with Sui Southern Gas Company for gas supply agreement.
During hearing, NEPRA has done some adjustments in the calculations provided by KE and observed that decrease will be around Rs 2.59/unit instead of the demanded Rs 1.79/unit by the company in the petition. The reduction in tariff will provide a relief of approximately Rs 3b to KE’s consumers, the NEPRA official said. NEPRA has completed the hearing and reserved the judgment. It is worth mentioning here that for the month of November also, NEPRA had reduced the KE’s tariff under monthly FCA by Re 0.76/unit.

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