Apr-Jun quarter: Nepra approves Rs6.69bn negative adjustment for KE

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved negative adjustment of Rs6.690 billion for KE for the quarter April-June 2023, under QTA mechanism, which will be adjusted in the new Multi-Year Tariff (MYT) for the period from 2023-24 to FY 2029-30.

The authority conducted the hearing to the extent of the Quarterly Adjustment request of K-Electric on October 19, 2023.

The authority is of the view that claim of write-off requires further deliberation and analysis.

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Therefore, for the purpose of instant quarterly adjustments, the amount of write-offs of Rs16.264 billion claimed by K-Electric, including amount already built in the tariff, has not been included in the instant workings.

Further, the amount already built in the tariff, ie, Rs3.093 billion has also been deducted. The authority will decide the matter separately.

Pursuant to its MYT determination, K-Electric, on August 04, 2023, filed quarterly adjustment request for the quarter Apr-Jun, 2023, requesting a positive adjustment of Rs3.217/kWh.

K-Electric submitted that it has calculated the price reset and indexation for June 2023 based on the mechanism defined in the MYT on provisional basis and requested the authority to approve the same so that it can be provisionally applied from July 2023 onwards subject to final tariff determination for the next tariff control period.

Subsequently, K-Electric vide letter of October 09, 2023, submitted that its write-off claims for the FY 2023 have been verified by the auditors and also requested for the end of term adjustments in light of MYT determination of July 5, 2018 and Mid-term Review (MTR) determination of March 1, 2022.

The KE further submitted that MYT for the period FY 2017-23 was applicable for the period till June 30, 2023, and KE has filed generation tariff and tariff for Transmission, Distribution and Supply Segment will be submitted post determination of Investment Plan by Nepra, which is under advanced stage of finalisation, therefore, unrecovered cost for the quarter April 2023 to June 2023, end of term adjustment, and write off claim as determined by the authority may be included in the schedule of tariff to be determined under new MYT applicable for the period July 01, 2023, onwards.

K-Electric had also requested an amount of Rs13.171 billion on account of write-offs, in addition to the amount of Rs3.093 billion already recovered through tariff.

According to Nepra, considering the fact that this is the final quarterly adjustment pertaining to the MYT 2017-23, any errors/omission observed at a later stage or any adjustments which could not be accounted for in the instant decision, may be adjusted in the subsequent periodic adjustments of the new MYT.

Copyright Business Recorder, 2024