The National Electric Power Regulatory Authority (NEPRA) has approved generation tariff for K-Electric Limited (KEL) power plants for the period following June 2023.
The utility shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.
KEL had applied to the NEPRA for approval of generation tariff of all its power plants for the period post June 2023, on December 01, 2022.
Earlier this month, K-Electric also requested the NEPRA to announce determination of its generation tariff pending since December 2022.
“The company is in the process of evaluating/reviewing the decision in detail and will exercise available remedies, if required, in accordance with the statutory provisions,” the utility said in its notice on Tuesday.
KE says not interested in Thar Block-II project sans its inclusion in IGCEP
“The multi year tariffs for transmission, distribution and supply businesses for the period FY24 to 2030 are currently under determination of the NEPRA and are fundamental for preparation of the financial statements for the period post June 30, 2023.
“PSX will be informed accordingly upon approval of the said tariff petitions,” the notice read.
‘Determination will not affect electricity rates’
In a separate statement, K-Electric said the determination “will not affect electricity rates charged to consumers, which is governed under the uniform tariff policy implemented across Pakistan”.
“This decision marks a significant milestone for K-Electric towards realising its comprehensive investment plan 2030 that entails company’s efforts to reduce losses in transmission and distribution, drive growth in its customer base, and bolster the power utility’s infrastructure to meet current demands and future needs,” the utility said.
K-Electric said it was evaluating the complete and extensive determination issued by the NEPRA, and observed that the approved tariff structure included some reductions, particularly pertaining to operation & maintenance (O&M) costs, return on equity (RoE), and a redefined control period.
Rs8.92 per unit: KE says received ‘Pakistan’s lowest tariff bid’ for 220MW hybrid project
K-Electric was privatised in November 2005 and is responsible for end-to-end planning and execution of generation, transmission, distribution and supply of power to its customers within its service territory which includes Karachi, Gharo in Sindh and Hub, Uthai, Vinder and Bela in Balochistan region.
The last multiyear tariff was determined on March 20,2017. Motion for leave for review in the matter was decided on July 05, 2018. The multiyear tariff control period ended on June 30, 2023, according to the NEPRA notification.