National Electric Power Regulatory Authority (Nepra) on Friday conducted a public hearing on K-Electric's plea regarding monthly fuel adjustment charges (FCA) and quarterly tariff adjustment here. The power utility has sought permission from the regulator for reduction of total 78 paisa on account of quarterly tariff adjustment for October to December, 2014 and reduction of 103.5 paisa per kilowatt hours (ps/kwh) as monthly fuel cost variation for December 2014.
The hearing was conducted by Chairman Nepra Tariq Sadozai and Vice Chairman Habibullah Khilji here at a local hotel. Representatives of domestic, commercial, and industrial consumers, KESC shareholders, and members of civil society attended the hearing and submitted their complaints, grievances, and objections regarding electricity issues with the power utility.
Muhammad Amir Ghaziani, director finance and regulation K-Electric, while giving presentation on the matter requested the representatives of Nepra to grant permission for reduction of 78 paisa on account of tariff adjustment for October to December, 2014 and reduction of 103.5 paisa ps/kwh on account of monthly fuel cost variation for December 2014.
He said that the KE in December, 2014 witnessed some Rs 1.0 billion total reduction on account of FCA as compared to preceding month. Keeping this fact in view, Ghaziani said the power utility was proposing the current relief (103 paisa) to its consumers. While elaborating he said fuel cost of own power generation in December was reduced by Rs 340 million while Rs 758 million decline was from external generation sources.
Adil Gilani from Transparency International Pakistan while showing resentment said that KE's all over performance has been questionable since it has been privatised. He said that the power utility instead of obeying the decisions of the authority was continued taking stay orders from the court deepening the sense of depravation among the Karachiites. Gilani alleged that power utility's power meters run faster than the normal average. He said company was charging inflated bills from poor consumers showing arrears.
He also accused Nepra of not taking strict actions against the power utility. "Nepra has miserably failed to work as an effective and vigilant regulator," he added. He urged the authority to act as a regulator not as a collusion partner of KE or subservient of Ministry of Petroleum.
Abu Bakar Osman of Pasban on the occasion rejected the KE's proposed reduction of 103 paisa per unit for December terming it a 'meager relief'. "KE should have reduced Rs 4 per unit because the fuel prices declined for the last few months. Anil Mumtaz, a consumer, accused KE of not generating power from its own generation plants with full capacity.
He said the company was relying on subsidised electricity from national grid. He also claimed that KE was not conducting rate tests of new plants. Anil said KE was unable to install meters in the each generating plants at Bin Quasim that was creating doubts over the transparency of KE's fuel consumption calculation mechanism.
Tanweer Bari of Karachi Chambers of Commerce and Industries (KCCI) requested the regulator to speedup proceedings on the cases including bank charges pending with Nepra. He said that the industrial consumers were irked by KE since it was sending load regularisation notices.
Muhamad Saeed Khan, a consumer, said: "KE was still charging 0.15 rupees per unit on consumers' monthly electricity bills despite the fact that the company fired some 7000 employs in 2012. While elaborating he said that the said amount was approved by Nepra in 2009 when KE submitted a request saying that the power utility was facing extra burden of employs. Some Rs 18 billion has so far been collected from the consumers, on the other hand the company did not retain the employs, he said.
Industrialist Arif Bilwani pointed out that KE purchased 1834 ton fuel from Byco against Rs 48026 per ton on 23 December 2014, the company on the same date purchased 1829 ton fuel from Pakistan State Oil against Rs 47822 per tone. "I did not understand the differences between PSO's and Byco's fuel price structure for KE," he added.