Nepra determines Rs6.40/unit hike in K-Electric’s power tariff

ISLAMABAD – The National Electric Power Regulatory Authority (Nepra) on Thursday determined a hike of around Rs6.40 per unit in power tariff for K-Electric on account four quarterly adjustment (QTA) for the period between April 2021 and March 2022.
In its two separate tariff determinations NEPRA worked out tariff increase of Rs1.33/unit and Rs6.49/ unit for two quarters of April-June 2021 and October-December 2021, respectively. The regulator allowed reductions at the rate of Rs0.95/unit and 47/unit on account of two quarters of July-September 2021 and January-March 2022, respectively. NEPRA has sent its determination regarding the quarterly adjustments to the federal govt. As per the determination, impact of change in KE’s own generation fuel cost component due to variation in fuel prices, generation mix and volume is passed on to the consumers directly in their monthly bills in the form of Fuel Charges Adjustment (FCA). Similarly, impact of change in the fuel component of Power Purchase Price (PPP) due as to variation in fuel prices and energy mix is passed on to the consumers through monthly FCA.
However, the impact of monthly variations in K-Electric own generation’s fuel cost component as well power purchase price to the extent of targeted T&D losses, not taken into account in the monthly FCAs, is adjusted on quarterly basis. In addition, the monthly variations in the variable O&M and fixed costs of the PPP, as allowed by the regulator, are also adjusted on quarterly basis. The impact of these variations is worked out based on expected units to be sold in the next quarter and to be adjusted in the schedule of tariff. Meanwhile, spokesperson NEPRA said that the tariff increase would not affect the consumers as it would form part of the tariff differential subsidy (TDS) to be paid by the government out of budget because of national uniform tariff.

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