Uniform tariff policy: Power Div seeks Rs1.55/unit hike in KE tariff

ISLAMABAD: Power Division has reportedly requested Cabinet Division to expedite final approval of Rs1.55 per unit hike for K-Electric consumers under the quarterly tariff adjustment (QTA) mechanism for ensuring uniform tariff across the country.

This raise will be in addition to what was recently approved by the National Electric Power Regulatory Authority (Nepra) a couple of days ago.

Power Division’s Section Officer Syed Mateen Ahmed in a letter to Cabinet Division has stated that the ECC considered the summary on July 20, 2022 and recommended it for approval of Federal Cabinet. However, Cabinet approval/ ratification has not yet been conveyed to Power Division.

He said the matter is of urgent importance as it involves financial implication for power sector. The billing cycle for the month of August starts from August 7, 2022 and in order to implement the recovery during next three months there is a need for approval of Government to submit motion for change in schedule of tariff before Nepra well in time.

Power Division has requested Cabinet Division to share updated status on the matter and requested to expedite the matter to enable it for proceeding ahead for filing the motion before Nepra in time and avoid any financial loss to the sector.

FCA mechanism: KE’s tariff for June hiked by Rs11.10/unit

Earlier, in its summary to the ECC, Power Division stated that under section 31(7) of the Nepra Act, NEPRA, in its determinations for Discos of June 16, 2022, has determined periodic adjustment in tariff for 2nd Quarter of FY 2021-22 for Discos. In light of determination, Nepra has recommended a uniform rate for the 2nd Quarterly Adjustment of FY 2021-22 for the consumers of Discos for the three-month period.

According to Power Division, in accordance with the National Electricity Policy, 2021, the Government may maintain a uniform consumer-end tariff for K-Electric and state-owned Discos (even after privatisation) through incorporation of direct/ indirect subsidies. Accordingly, KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country which will result in an impact of tariff increase of Rs 1.5547/unit with recovery period of three months.

Keeping in view Nepra’s determination, Power Division submitted following recommendations for consideration and approval of ECC of the Cabinet: (i) The tariff rationalization by way of adjustments may be approved for K-Electric;(ii) Nepra may be approached to issue revised Schedule of Tariff (SoT) determined for the Quarter October to December 2021 or incorporate in the latest Schedule of Tariff being determined by Nepra for the Quarter January to March 2022, after incorporating changes in tariff and upon approval of Nepra, notify it in the official gazette by way of modification in SRO Nos. 575 (1),2019 as modified from time to time; and (iii) such adjustments shall be applicable on the consumption of July 2022, August 2022 and September 2022 to be recovered from consumers in August 2022, September 2022 and October 2022, respectively.

Copyright Business Recorder, 2022