K-Electric seeks over Rs6 per unit hike in power tariff

ISLAMABAD: The K-Electric, Karachi’s sole power distributor, has filed petitions in the National Electric Power Regulatory Authority (Nepra) seeking a Rs6.52 per unit hike in power tariff for its consumers, reported ARY News.

The power company has sought the tariff hike on account of monthly fuel charge adjustments for the period from January 2021 to June 2021 and quarterly adjustment from Jan 2021 to March 2021.

Also Read: NEPRA EXTENDS HIKE IN PEAK TARIFF FOR INDUSTRIAL CONSUMERS

The power regulator will hear and decide the petitions on July 28.

The K-Electric sought a Rs1.97 hike in per unit price of electricity on account of fuel adjustment cost for the month of Jan, Rs2.49 for Feb, Rs1.49 for March, Rs0.86 for April, Rs0.64 for May, and Rs0.211 for June.

In addition, it called for a Rs0.36 per unit hike in electricity tariff on account of quarterly adjustment for the period from Jan-March 2021.

Also Read: NEPRA DEFERS DECISION ON K-ELECTRIC PLEA FOR POWER TARIFF HIKE

Residents of the port city will have to bear an additional burden of Rs6.52 per unit if the power company’s pleas for the hike are granted.

According to a notification, NEPRA has scheduled a public hearing for KE’s request of Monthly Fuel Cost adjustments for the months January 2021 to June 2021 and quarterly tariff variation for March 2021.

It read, “These requests are in line with the mechanism given in KE’s Multi-Year Tariff whereby changes in Fuel prices, generation and power purchase mix are passed through along with certain annual adjustments.”

The major impact in monthly fuel cost adjustment is due to fuel price increase as furnace oil prices went up and the average impact of these 6 months will be PKR 0.49/Kwh.

“FCA will be charged to consumers based on their consumption during respective months. These requests will be determined by NEPRA and will be charged based on NEPRA’s decision.”

It added, “The quarterly tariff variations include requests for March 2021 PKR 0.366 / kWh, with GoP’s policy of Uniform consumer tariff across the country, these variations are not likely to impact consumers.”