NEPRA allows K-Electric to raise tariffs by Rs 4.8 per unit

January 1, 2020 (MLN):  The National Electric and Power Regulatory Authority (NEPRA) has allowed K-Electric (KE) a substantial increase of around Rs 4.8/kWh in power tariffs for their customers on account of Quarterly tariff adjustment.

Due to hike in power tariff, the KE will recover extra amount Rs 106 billion from its customers.

According to the notification issued by NEPRA, the authority, based on the information, data and record provided by K-Electric, has approved the quarterly adjustment claims for the period from Jul.-Sep. 2016 to Jan.-Mar. 2019.

As per the statement issued by the authority, the electricity tariff has been increased from Rs 12.81 to Rs 17.69 per unit and its impact will be reflected in electricity bills for the coming months.

The major reasons for increasing electricity prices are:

• Use of RLNG by K-Electric in power production, having an additional impact of Rs 24 billion.
• Increase in process of Gas from a reference price of Rs 400/MMBTU to Rs 629/MMBTU.
• Increase in price of FO from a reference price of Rs 27,000/MT to around Rs 70,000/MT.
• Increase in O&M and capacity cost of IPPs owing to indexation and exchange rate variation.

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