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K-Electric seeks extra collection of Rs723m for fuel cost adjustment

K-Electric seeks extra collection of Rs723m for fuel cost adjustment

KARACHI: K-Electric has filed an application, seeking approval of the power regulatory authority for an additional collection of Rs723.2 million from consumers on account of fuel cost and electricity price adjustment.

If approved, this extra collection, to be made for the electricity consumed in October 2016, will lead to an increase of Rs0.48 per unit in power tariff for the month.

The National Electric Power Regulatory Authority (Nepra) said in a notification on Wednesday that K-Electric had submitted a request for additional collection and an upward revision in tariff, citing a surge in its fuel cost and rise in the cost of power purchase from external sources, including the National Transmission and Despatch Company and independent power producers.

Nepra said the tariff increase, if approved, would be provisional as it was in the process of approving a multi-year tariff for the integrated power company since its previous multi-year tariff had expired on June 30, 2016.

“K-Electric has submitted a petition for the determination of its new MYT (multi-year tariff), which is under process before the authority. Pursuant to the mechanism prescribed in the previous determination, K-Electric has requested to allow FCA (fuel cost adjustment) for October 2016 on a provisional basis,” it said.

K-Electric added in the application that the cost adjustment request was submitted as per the multi-year tariff petition filed by the company for the period July 1, 2016 to June 30, 2026.

The Rs0.48 per unit tariff increase sought by K-Electric included Rs0.13 per unit on account of fuel price variation and Rs0.35 per unit on account of power purchase price variation.

In order to take a decision on the tariff revision request, Nepra has decided to hold a public hearing on November 29 in Islamabad. “All the interested/affected parties are invited to make written/oral comments or objection as permissible under the law,” the regulator said.

Courtesy : Express Tribune

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