ISLAMABAD-National Electric Power Regulatory Authority has allowed an increase of Rs 12.68 per unit in power tariff for K-Electric on account of variations of power purchase price (PPP) and prices level reset for the quarterly adjustment of 4th quarter FY 2021-22.

According to a notification issued by NEPRA here Monday, K-Electric had initially requested a quarterly adjustment of Rs.14.852/unit, however, subsequently revised its request to Rs. 14.533/unit for the quarterly adjustments of 4th quarter (April to June) FY 2021-22. The federal govt is likely to pay a subsidy of Rs56 billion to protect the Karachiites from the increase of Rs12.68 per unite increase in tariff on account of quarterly adjustments.

The hearings was held on August 31, 2022 on the KE petition and after thorough assessment and making some deduction NEPRA has allowed an increase of Rs. 12.6818/kWh for the quarterly adjustments. K-Electric was allowed cost of RLNG for operation of its own power plants based on RLNG rate of Rs. 2,529/MMBTU for January 2022, however, subsequently OGRA revised the tariff to Rs.2,498./MMBTU. Based on the revised rate of OGRA, a deduction of Rs 40 million has been made in the instant quarterly adjustment. For the period prior to Jan 2022, KE has been directed to provide Fuel Supplier CV, which KE hasn’t. Accordingly, for the period June 2019 to October 2021, the highest CV as per the fortnight report provided by TAPAL has been considered till the time Tapal Energy provides CV as per the fuel supplier. This has resulted in a deduction of Rs. 34.764 million, which has been accounted for in the instant quarterly adjustment.

The Authority during proceedings of monthly FCAs of KE directed it to provide details of net metering units for inclusion in monthly FCAs. Based on the above from March 2022 onwards excess units of net metering as provided by KE and their cost is being made part of the monthly FCA workings. For the previous periods, KE was asked to provide details of previous Net Metering units and its financial impact, had the same been accounted for in the respective monthly FCAs. KE in its response has provided an impact of Rs. 11.7762 million, to be deducted. The Authority understands that the impact worked out by KE is incomplete as any inclusion of units in monthly FCA would also impact the workings of the quarterly adjustment. Accordingly, the quarterly adjustments of K-Electric for the period since January 2019, after inclusion of excess net metering units in the total sent out. This has resulted in additional deduction of Rs.84.65 million, thus the total deduction to be made in the current quarterly adjustment is Rs.96.42 million, which has accordingly been deducted.

The Authority in the quarterly adjustment for the quarter ending September 2020 deducted an amount of Rs. 0.0904/kWh. Based on the allowed annual indexation a component of Rs. 0.0062/kWh has been deducted from the quarterly adjustment for the quarter ending June 2022. According NEPRA as per practice, the government maintains a uniform tariff across the country and generally the differential is adjusted through subsidy. As per the Authority’s decision residential consumer, will be given the benefit of only one previous slab. While residential life line consumer, will not be given say slab benefit. Similarly the decision said that for one slab benefit in the un-protected residential consumer category slab, from 301-700, the slab rate, of 201-300 slab could be used. Under tariff A-1, there will be minimum monthly customer charge.