KARACHI: K-Electric (KE) request for hike in power tariff is rejected on Thursday by the National Electric Power Regulatory Authority (NEPRA), in order to reinstate the preceding Multi Year Tariff (MYT).
The power tariff is declared as Rs12.82/kwh for latest MYT for the next 7-years (FY 2017-23) which is observed as slightly elevated at an amount of Rs0.05 from the tariff of October 2017 as Rs12.77/kwh.
It is the third time, that KE plea regarding increase in power tariff is rejected by NEPRA.
NEPRA, on their website announced on Thursday for an update on multi-year tariff without any consolation to Abraaj Group. Also, K- Electric has advised the government to provide the notification within next 15 days.
In the notification, NEPRA has ordered KE to seek its consent for any expected power achievement, also rates and various terms for acquiring power from peripheral sources shall be confirmed prior. Further, KE is not permitted to regulate any tariff due to acquisition of power and related cost discrepancy of those not approved by NEPRA earlier.
K-Electric (KE) was looking for a five-year MYT at Rs16.10/KWH annex for power creation in its two plants with capacity of 420 megawatts. According to power efficacy department, they assert an expense of about Rs1.5 billion for its revival.
According to sources, NEPRA decision related to MYT may affect the venture in various chief projects including 900 MW project, costs around $950 million and is under construction at Bin Qasim port.
KE in its request has explained to NEPRA the functional life of unit-I and unit-II should be extended to August 2023 and August 2024.
The controller has entertained only one request of K-Electric related to US dollar indexation, which effected the tariff and increase of tariff was done by Rs0.005 per unit as compared to previous tariff of Rs12.77 per unit.