Power utility KE allowed to raise electricity tariff by Rs11.10/unit

By Staff Reporter

ISLAMABAD: Power regulator Nepra on Thursday allowed fuel cost adjustments (FCA) of Rs11.10/unit to Karachi-based power utility K-Electric for the electricity consumed in June.

The additional fuel cost adjustment (FCA) will be charged in the bills for August and September 2022. The FCA will be applicable to all categories of KE consumers except lifeline customers.

A day earlier, the government announced an increase of Rs3.50 per unit in average base tariff across the country. Under a government rule, changes in fuel cost are passed on to consumers monthly.

“As per the mechanism provided in the determination, the impact of change in KE’s own generation fuel cost component due to variation in fuel prices, generation mix and volume shall be passed on to the consumers directly in their monthly bills in the form of Fuel Charges Adjustment,” Nepra said.

“The impact of change in the fuel component of Power Purchase Price (PPP) due to variation in fuel prices and energy mix would also be passed on to consumers through monthly FCA.”

Nepra admitted that the decision would burden the consumer with FCA of June 2022 “by Rs11.1 023/kWh in August would not be in the interest of the consumers” as it had allowed Rs9.89 as FCA for the month of June to be recovered in the month of August.

“The authority has decided to charge Rs.3.0114/kWh, for the FCA of Jtme 2022 in billing month of August 2022. Whereas, the remaining i.e. Rs.8.0909/kWh shall be charged in the billing month of September,” it added.