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ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved negative adjustment of Rs 7.43 per unit in KE’s tariff and Rs 0.19 per unit positive adjustment in Discos tariffs for the month of November 2022 under monthly Fuel Charges Adjustment (FCA) mechanism.

The authority conducted a public hearing on December 27, 2022, wherein different issues were raised by the representatives of business community and public respectively.

According to separate determinations and notifications issued by the regulator, the KE had sought negative adjustment of Rs 7.04 per unit in FCA of November.

The Authority noted that the Power purchase agreement was signed between NTDCL and K-Electric on January 26, 2010 for five years for sale/purchase of 650 MW on basket rates. Subsequently, a decision was made by the Council of Common Interest (CCI) in its meeting held on November 08, 2012 with respect to the modalities for withdrawal of electric power from NTDCL by the petitioner, wherein it was decided to reduce the supply of energy by 300MW from NTDCL to K-Electric.

FCA for Oct 2022: Nepra to allow KE negative adjustment of Rs2.15/unit

However, the decision of the CCI has been impugned by way of suits /petitions by K-Electric in the High Court of Sindh at Karachi. No new agreement has been signed between K-Electric and NTDCL till date, and the K-Electric is continuing to draw energy from the National Grid, which at present is around 1100 MW.

According to Nepra’s determination on Discos FCA, increase of Rs 0.1892/kWh shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers of all the Discos. The said adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of November 2022. Discos shall reflect the fuel charges adjustment in respect of November 2022 in the billing month of January 2023.

Member Nepra (Sindh), in his additional note, stated that power plants of National Power Parks Management Company Limited at Haveli Bahadur Shah (HBS) and Baloki are included in the most efficient plants of Pakistan power sector.

Copyright Business Recorder, 2023

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