ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved the positive adjustment of Rs1.45 per unit in the tariff of K-Electric for May 2023 under the monthly fuel price adjustment (FCA) mechanism.
The authority conducted a public hearing on July 5, 2023, on KE’s FCA adjustment request of Rs1.49 per unit for May.
The authority carried out an in-house analysis of the data provided by K-Electric for the month, to work out the financial impact due to deviation from the EMO.
K-Electric, in its adjustment requests, has certified that it despatches as per Economic Merit Order from its own generation units (with the available fuel resources) and the import from external sources. It also certified that the cost of fuel and power purchase claims do not include any amount of late payment surcharge/markup/interest.
May 23 FCA: Nepra approves tariff hike for Discos, KE
Tanvir Barry, a commentator, submitted that the cost of the KE’s own generation has been high for a long time and that there is a need to induct renewable energy.
Regarding the financial impact due to underutilisation of efficient plants namely, KCCP, KGTPS and SGTPS etc on account of lower gas pressure, a letter was issued to KE on September 16, 2021, whereby, it was directed to resolve its gas pressure/lower gas quantity issues within 30 days.
In response, KE has informed that it is in the process of resolving the lower gas pressure issue, however, there are certain meetings with stakeholders that will take place in due course of time. As of now, no GSA has been finalised between KE and SSGC, despite the directions of the authority.
Shall be applicable to all the consumer categories except lifeline consumers. Shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains.
Rafique Ahmad Shaikh, Member Sindh, in his dissenting note, has stated that the KE is continuously being directed to increase the share of renewable energy in its generation basket for reasons including reducing the EPP, inducting clean energy in the system, and reducing the burden of foreign exchange from the national exchequer. It is, however, noted that KE could not be able to achieve satisfactory progress in the matter.
The matter was again taken up during the public hearing of FCA held in the matter on July 5, 2023.
The K-Electric during public hearing informed that its RfP in the matter is pending with the Nepra for want of approval.
In explaining his viewpoint, the member Sindh has stated that he is constrained not to sign this decision till the time justification of delay in approving all RfPs.
Copyright Business Recorder, 2023
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