KE requests Nepra to allow a hike of Re0.976 per unit in power tariff

September 23, 2021 (MLN): K-Electric (KEL) has submitted its request to National Electric and Power Regulatory Authority (NEPRA) for monthly fuel charges adjustment (own and power purchases) for the month of August 2021.

In a petition, KEL has requested Nepra to allow a hike of Re0.976 per unit in power tariff under FCA for August. KE noted that the calculation for August is based on CPPA-G’s latest fuel cost determined by NEPRA for the month of July 2021 which is subject to adjustment based on the determination for August 2021 to be issued by Nepra.

As per the petition, installment of GIDC arrears amounting to Rs 762million per month is being billed by Sui Southern Gas Company Limited as per Supreme Court order. However, NEPRA in its FCA decision for the month of June 2021 has stated that considering the fact that KE has obtained stay order from Sindh High Court in the matter therefore it will not allow KE any amount on account of GIDC till the final decision by Sindh High Court. Accordingly, GIDC for the month of August 2021 will be claimed as per the final decision of the Sindh High Court in the matter.

KEL also requested NEPRA for expeditious processing of pending monthly variation for the month of July 2021 and quarterly tariff variation for the period April 2020 to June 2021.

In this regard, NEPRA will conduct a public hearing on KE’s petition on September 29,2021 wherein the issues regarding whether the requested price variation is justified, and whether the KEL has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources, will be discussed.

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