Nepra increases K-Electric tariff by Rs1.075 per unit

January 4, 2022 (MLN): The National Electric Power Regulatory Authority (Nepra) on Tuesday, notified an increase of Rs1.075 per unit in the electricity tariff for K-Electric (KE) consumers for the month of October 2021 under fuel cost adjustment (FCA) mechanism.

According to the notification issued by Nepra, KE had requested Rs1.38 per unit increase in power tariff under FCA. However, the Authority approved positive FCA of Rs 1.075/kWh.

The increased rate would be applicable to all consumer categories except lifeline consumers and would be recovered from the consumers via the January 2022 billing.

As per the mechanism provided in the determination, impact of change in KE's own generation fuel cost component due to variation in fuel prices, generation mix & volume shall be passed on to the consumers directly in their monthly bills in the form of FCA, the notice said.

Similarly, impact of change in the fuel component of Power Purchase Price (PPP) due to variation in fuel prices & energy mix shall also be passed on to consumers through monthly FCA.

However, the impact of monthly variations in million rupees in K-Electric's 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, shall be adjusted on quarterly basis, the notice added.

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