Islamabad - Nepra has reserved the judgment in the KE petition for Rs 1.54 per unit increase in base rate of electricity and asked the company not to carry out loadshedding during night hours so the people can have a peaceful sleep.

Nepra chairman Tauseef H. Farooqui while presiding over the second day public hearing on a KE petition, seeking a Rs 1.54 per unit increase under its mid-term Multi-Year Tariff (MYT) regime  said that that KE management is reactive.

Why you don’t foresee the future, how it’s going to work if you are reactive to everything. How you are going to operate the company with reactive management, he observed.

In 2018 MYT determination, Nepra had envisaged a mid-term review to the extent of allowed investments on completion of three-and-a-half years of MYT under which KE is seeking upward revision in tariff.

K-Electric had sought an additional investment of Rs 144 billion other than Rs 299 billion allowed by the regulator in the MYT.

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.

National Electric Power Regulatory Authority (NEPRA) had notified Rs 12.81/kwh new MYT for next 7-years (FY 2017-23).

On the second day of the hearing Hafiz Naeem ur Rehman Ameer of Jamaat-e-Islami, Karachi said on what base KE is asking money for investment. What betterment they have brought in Karachi power supply, he questioned. He further asked that why the licence of KE has not been cancelled so far? He said that KE should not be allowed increase power tariff for the consumers.

During the hearing the consumers from Karachi complained that KE is carrying maximum loadshedding in off peak hours while in peak hours there are minimum outages.

In peak hours the power tariff is Rs 20.70 per unit while in off peak hours it is Rs 14.38 per unit.

The consumers demanded NEPRA to allow more power distribution companies to work in Karachi which will promote healthy competition.

In yesterday hearing Nepra had also observed that that K-Electric had achieved only 39 per cent progress during three and a half year under its mid-term investment plan and it was again seeking permission for Rs 144 billion investment. Chairman NEPRA said KE should not carry loadshedding during night hours and let the consumers enjoy peaceful sleep. CFO K-Electric said that the demand of electricity against the availability of 2800 MW the demand is 3200 MW. He attributed the electricity shortage to low pressure of gas.

Chairman NEPRA asked KE that how many hours loadshedding is being carried out in Karachi today? CFO KE responded nine hours.