Islamabad - In its mid-term review of the Multi Year Tariff, the K-Electric Limited has sought an increase of Rs1.54 per unit in the base rate on account of cost of working capital, revision in the cost of debt/sent-out growth and normal cost of working capital.

In its petition submitted to NERPA in the matter of Mid-Term Review of the Multi Year Tariff, the K-Electric Limited also sought an increase in the impact of exchange rate on Allowed Return on Equity (ROE) Component from 17.05% to 41.94%. Nepra will hold Public hearing on the KEL petition on September 16, 2020.

In July 2018, National Electric Power Regulatory Authority (NEPRA) notified Rs 12.81/kwh new MYT for next 7-years (FY 2017-23).The Authority in its determination dated July 05, 2018, regarding Multi Year Tariff (MYT) of the K-Electric Limited (KEL) envisaged that a Mid-Term Review to the extent of allowed investments shall be carried out, after completion of three and a half (3.5) years of the tariff control period of the said MYT. Accordingly, KEL vide its letter dated March 11, 2020. filed a petition with the Authority for Mid Term Review of its MYT.

In its petition KEL has sought following reliefs from the Authority; An additional investment of Rs 143,868 million other than Rs 298.915 million allowed by the Authority in its MYT, by revising the total Investment to Rs 442,783 Million.  KEL has sought an increase in the impact of exchange rate on allowed return on equity(ROE) component from 17.05% to 41.94%; An increase of Rs  0.65/kWh in the base rate on account of cost of working capital (Government Entities); An increase of Rs 0.10/kWh in the base rate on account of revision in the cost of debt; an increase of Rs 0.29/kWh in the base rate on account of Revision in the sent-out growth and an increase of Rs  0.50/kWh in the base rate on account of normal cost of working capital.

 Following the request of the KEL, certain queries were forwarded to KEL on May 21, 2020, for its response. KEL, submitted its reply to the same vide its letter dated June 22. 2020. The Authority has considered the response of the KEL and has decided to further deliberate the matter through a Public Hearing on September 16 2020. The hearing  will be conducted through Zoom due to the prevailing situation pertaining to COVID-19.