NEPRA to hold public hearing on a petition filed by KEL for mid-term review of MYT

September 4, 2020 (MLN): The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on a petition filed by K-Electric for the mid-term review of Multi Year Tariff on September 6, 2020.

In its petition submitted to NEPRA, K-Electric has sought an increase of Rs1.54 per unit in the base rate on account of Cost of Working Capital (Government entities).

KEL also sought an increase in the impact of exchange rate on Allowed Return on Equity (ROE) Component from 17.05% to 41.94%.

As per the public hearing notice issued, in July 2018, NEPRA notified Rs 12.81/kwh new MYT for next 7-years (FY 2017-23).The Authority in its determination dated July 05, 2018, regarding Multi Year Tariff (MYT) of the K-Electric Limited (KEL) envisaged that a Mid-Term Review to the extent of allowed investments only shall be carried out, after completion of three and a half (3.5) years of the tariff control period of the said MYT. Accordingly, KEL vide its letter dated March 11, 2020. filed a petition with the Authority for Mid Term Review of its MYT.

The other reliefs that KEL has sought from the Authority include; an additional investment of Rs 143,868 million other than Rs 298.915 million allowed by the Authority in its MYT, by revising the total Investment to Rs 442,783 Million.

It also demanded an increase of Rs 0.10/kWh in the base rate on account of revision in the cost of debt; an increase of Rs 0.29/kWh in the base rate on account of Revision in the sent-out growth and an increase of Rs  0.50/kWh in the base rate on account of normal cost of working capital.

In view of the above requests, certain queries were forwarded by the Authority to KEL on May 21, 2020, for its response. KEL, submitted its reply to the same vide its letter dated June 22, 2020.

The Authority has considered the response of the KEL and has decided to further deliberate the matter through a Public Hearing. The hearing will be conducted through Zoom due to the prevailing situation pertaining to COVID-19.

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