ISLAMABAD: On Monday, the National Electric Power Regulatory Authority (NEPRA) announced an additional Rs1.90 per unit cost to consumers nationwide for June, with further increases of 93 paise each for July and August. Concurrently, K-Electric (KE) has filed another fuel cost adjustment (FCA) claim for April, adding to its existing Rs18.6 per unit petition for the past nine months.
In its recent submission to NEPRA, KE has proposed three different FCA scenarios for April. Two scenarios suggest a reduction of 74 paise to Rs1.18 per unit, while the third indicates an additional charge of 44 paise per unit. A public hearing on this matter is scheduled for later this month, although pending cases for the past nine months have yet to be resolved, even after a hearing on May 9.
KE’s cumulative FCA adjustment claims total Rs18.6 per unit or approximately Rs26 billion. The company aims to clear a backlog and avoid a sudden burden on its consumers, proposing three options for FCA calculation:
The difference between actual fuel cost and the reference monthly fuel cost per the interim tariff.
The difference between actual and reference monthly fuel cost per the tariff petition under NEPRA’s review.
The difference between actual fuel costs and annual weighted average fuel reference costs per the tariff petition.
Meanwhile, NEPRA has officially notified the additional Rs1.90 per unit charge for June, followed by 93 paise each for July and August, under the quarterly tariff adjustment (QTA). This adjustment, aimed at helping power companies recover Rs46.6 billion, applies to all consumer categories except those using fewer than 100 units per month and protected lifeline consumers.
NEPRA has also concluded a public hearing on a directive for a 25% increase in the base national tariff, effective from July 2024.
These adjustments reflect the ongoing challenges and complexities in managing fuel cost adjustments and tariff settings within Pakistan’s energy sector.
Story by Khaleeq Kiani
