National Electric Power Regulatory Authority (Nepra) may give another hike in power tariff of Karachi Electric Supply Company against fuel adjustment surcharges and operation and maintenance costs. Nepra, which has allowed Rs 1.66 per kilowatt hour increase in tariff of KESC on Thursday, is likely to pass on the cost of consumed furnace oil and other operational charges to the end consumer through a public hearing this month.
According to sources, the authority has invited interveners to the hearing being held to discuss a petition filed by KESC, seeking enhancement of around 86.19 paisa/kWh in its tariff against fuel charges adjustment for the month of June this year as well as tariff adjustment up to June 2012. According to a notification of Nepra, KESC has sought 17.555 paisa, 13.656 paisa, 9.00 paisa, 25.876 paisa, 11.660 paisa and 8.443 paisa against monthly fuel adjustment, adjustment in tariff variation, receivable prices, adjustment in previously approved prices, adjustment of CPI in Operation and Maintenance (O&M) and other adjustment in tariff respectively making a total increase of 86.19 paisa/kWh.
Though a major number of megawatts supplied by KESC are generated by gas and hydro hydroelectric power plants, the power company goes to NEPRA every month and quarterly basis seeking an adjustment in tariff differential caused by consumption of costlier furnace oil.
KESC is allowed limited increase in tariff under various heads like adjustment in tariff on account of fuel price/cost variation/power purchase cost variation or on account of inflation, and O & M cost adjustment. To discuss the new petition filed by KESC for more hike in tariff, Nepra has fixed the hearing on August 31 at Navy Fleet Club, Navy Welfare Center near Lucky Star roundabout, Iqbal Shaeed Road Karachi.
The adjustment in variation of tariff as per fuel prices was being allowed by Nepra since the "Amended Agreement" signed between KESC and Ministry of Water and Power in April 2009 remove a cap of 7 years on tariff changes which was part of previous agreement. The agreement, originally signed between the Privatisation Commission and KESC in 2005, was amended on the request of the company by the Ministry on behalf of Government of Pakistan, while protecting the public utility in increasing the tariff and other facilities it is enjoying.
No political party attends hearing to oppose tariff hike: Interestingly none of the political and religious parties, which cry against the tariff increase usually after Nepra''s decision, attend the public hearing mainly organised to oppose and discuss KESC''s demands for hike in tariff.
But soon after the decision about tariff, the parties start issuing statements against KESC and NEPRA which mostly unnoticed reflecting that their versions are no more than worth political statements. Most of the public hearings, very negligible representatives out of 2 million consumers of KESC are attended which is mainly held to allow changes in electricity tariff affecting whole Karachiites.
Besides the representatives of political parties and NGOs public, sources believe, should also come forward to oppose an unjustified increase in tariff. The public hearings of Nepra are mostly attended by some interveners from trade/industry including Aarif Bilwani, Dr Qazi Ahmed Kamal and Chaudary Mazhar Ali, Secretary KESC Share Holders Association (SHA).