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Nepra allows KEL to increase electricity tariff up to Rs 1.97 per unit

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March 15, 2021 (MLN): The National Electric Power Regulatory Authority (NEPRA) has allowed K-Electric to increase electricity prices up to Rs1.97 per unit for three quarters.

According to the notification issued by NEPRA, with the policy of uniform consumer tariff for all power distribution companies across the country, these variations will not impact consumers and will be included in the tariff differential subsidy by the government. However, NEPRA allowed K-Electric to reduce electricity price by Rs0.02 per unit for one quarter.

Nepra has identified quarterly tariff changes for the period from April 2019 to March 2020, wherein the regulator allowed a tariff hike of Rs0.773 per unit for the April to June 2019 quarter, Rs1.97 per unit for July to September 2019, and Rs0.6132 per unit for January to March 2020.

However, with regards to electricity price for October to December 2019 quarter, the regulator decided to reduce it by Rs0.02 per unit.

The authority, among other adjustments, did not allow the write-off claim of K-Electric worth Rs4.051 billion.

Pursuant to notification of the determined MYT, K-Electric filed its Quarterly Adjustments requests on account of Power Purchase Price (PPP), indexation of O&M costs, adjustment of T&D losses, etc. for the quarter ended June 2019 and September 2019 along with supporting documents.

The K-Electric also requested write-offs amounting to Rs4, 051 million (gross) for FY2018-19. The net amount claimed by K-Electric after accounting for the recovery made through the write-off component built in the multi-year tariff for 2017 i.e. Rs2, 994 million, was Rs1, 056 million.

During the preliminary analysis of the provided consumer-wise detail of write-offs by K-Electric, the Authority was of the view that the claim of write-off requires further deliberation and analysis. The Authority also had a meeting with the Auditors of K-Electric in this regard and had asked the Auditors for their written response on certain issues. Therefore, for the purpose of instant quarterly adjustments, the amount of write-offs of Rs.4,051 million claimed by K-Electric, including the amount of Rs.2,994 million already recovered through the tariff, has not included in the instant workings. The Authority will decide the matter accordingly, the notice said.

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Posted on: 2021-03-15T13:34:00+05:00

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