ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a negative adjustment of Rs6.69 billion for K-Electric (KE) for the April-June 2023 quarter under the Quarterly Tariff Adjustment (QTA) mechanism. This adjustment will be incorporated into the new Multi-Year Tariff (MYT) for the period 2023-24 to FY 2029-30.
The authority conducted a hearing regarding KE’s quarterly adjustment request on October 19, 2023. NEPRA stated that KE’s claim of Rs16.264 billion in write-offs requires further analysis and has thus not been included in the current adjustment. Additionally, Rs3.093 billion already built into the tariff has been deducted.
KE filed the quarterly adjustment request on August 4, 2023, seeking a positive adjustment of Rs3.217/kWh. However, NEPRA’s decision resulted in a negative adjustment.
KE also requested adjustments for write-offs amounting to Rs13.171 billion, in addition to the Rs3.093 billion already recovered. The company asserted that its MYT for FY 2017-23 was applicable until June 30, 2023, and the unrecovered costs for the April-June 2023 quarter should be included in the new MYT schedule starting July 1, 2023.
NEPRA indicated that any errors or omissions discovered later or adjustments not accounted for in this decision might be addressed in subsequent periodic adjustments of the new MYT.
Story by Mushtaq Ghumman
