The National Electric Power Regulatory Authority (Nepra) on Friday issued a notification, allowing Karachi Electric Supply Company (KESC) to raise its tariff by Rs 1.66 per unit. The price increase was made to compensate for fuel adjustment charges. According to Nepra, customers consuming less than 50 units a month would not be affected by the price increase.
On July 18 this year, Nepra allowed an increase of Rs 1.14 and Rs 0.52 per unit in KESC's tariff for April and May this year. A hearing, headed by Nepra's Acting Chairman Ghiasuddin Ahmad, focused on two petitions filed by KESC under monthly Fuel Price Adjustment (FPA) formula.
During the hearing, KESC officials said that an additional fuel cost of Rs 1.44 billion had been incurred on production of 1.3 billion units of electricity in April this year and Rs 776 million in May 2012 for generating 1.5 billion units. This showed fuel cost variation of external generation resources in April was Rs 214.78 million in April and Rs 521.3 million May.
Details of charges collection will be announced separately. Pursuant to the subscribed mechanism for monthly adjustment of fuel charges variation, notified in the official gazette, KESC is bound to provide variation in fuel price and units generated during that period. Previously the tariff had been raised by Rs 1.15 per unit in April and Rs 1.51 per unit in May. KESC will recover the amount directly from its consumers.