Tag: public hearing

  • Electricity tariff for K-Electric consumers increased by Rs4.45 per unit 

    Electricity tariff for K-Electric consumers increased by Rs4.45 per unit 

     
    Residents of Karachi are set to see an increase in their electricity bills, as the National Electric Power Regulatory Authority (Nepra) has recently decided to raise the power tariff by Rs4.45 per unit for consumers of K-Electric (KE).  

    The decision to elevate electricity rates, as outlined in a notification from the Power Division, was made during the initial quarterly adjustment of the preceding fiscal year. 

    Moreover, additional charges from KE consumers will be applied to their October and November 2023 bills, as specified in the notification. 

    Simultaneously, in response to a request from KE, Nepra has granted approval for the inclusion of actual or prudent expenses associated with the temporary operation of Unit-3 of Bin Qasim Power Station (BQPS-I) from May 1 to August 15, 2021, in the cost calculations. 

    Consequently, prior determinations made by the Authority on September 15, 2021, and May 12, 2022, concerning this matter have been adjusted to accommodate this modification. 

    “In view of the foregoing, the Authority hereby decides to accede to the request of KEL [K-Electric Limited] and allows the actual/prudent cost relating to the interim operation of Unit-3 of BQPS-I (from May 1, 2021, to August 15, 2021). Accordingly, the earlier decisions of the Authority (dated September 15, 2021, and May 12, 2022) in this regard stand modified to this extent,” stated the power regulator. 

    However, a member of the authority, Mathar Niaz Rana, expressed in an additional note that under the Multi-Year Tariff (MYT) plan, KE was obligated to have both phases of BQPS-III operational by December 2019, a deadline they failed to meet. 

    Consequently, they resorted to utilising Unit 3 of BQPS-I, resulting in additional fuel expenses. The cost stemming from this inefficiency should not be passed on to consumers. 

    Nepra conducted a public hearing on January 25, 2023, during which KE was given an opportunity to present its case. 

    According to The News, in the hearing, the utility company asserted that they chose to temporarily utilise Unit-3 of BQPS-1 to meet Karachi’s peak summer demand instead of resorting to more costly power generation methods or implementing power outages, all in the best interest of consumers, as per Nepra Act Sections 31(2) and 32(3). 

  • Nepra approves Rs2.31 per unit tariff increase for K-Electric consumers

    The National Electric Power Regulatory Authority (Nepra) has approved a tariff increase of Rs2.31 per unit for K-Electric (KE) consumers due to June 2023’s monthly fuel charges adjustment. This is slightly below KE’s requested Rs2.34 per unit hike. The new tariff takes effect in August and excludes lifeline consumers and electric vehicle charging stations.

    A public hearing on July 26, 2023, discussed KE’s proposal to address higher fuel costs for electricity generation in June. KE generated electricity at Rs24.90 per unit internally, while government-supplied electricity cost Rs11.56 per unit during that period. Nepra’s analysis resulted in an upward revision of Rs2.31 per unit for June, compared to KE’s requested increase.

    Conversely, Nepra raised the power tariff by Rs1.81 per unit for ex-Wapda distribution companies (DISCOs) in June’s fuel charges adjustment, slightly less than the hike for KE consumers. The Central Power Purchasing Agency-Guarantee (CPPA-G) requested a tariff increase of Rs1.88 per unit on behalf of DISCOs.

    This tariff adjustment, effective in August, applies to all DISCOs customers except lifeline consumers and electric vehicle charging stations. It follows a public hearing held by Nepra on July 26. Earlier, DISCOs customers paid Rs1.90 per unit under May 2023’s fuel charges adjustment, making the new rate Rs0.09 per unit lower.

    While the tariff increase has raised concerns among consumers, it has also spotlighted the delay in approving renewable energy projects. During KE’s petition hearing, an industrial consumer, Rehan Javed, highlighted pending Requests for Proposals (RFPs) with Nepra, which could expedite affordable electricity production through renewables, benefiting Karachi’s businesses.

    Nepra member Rafique Ahmed Shaikh expressed disappointment in KE’s slow progress in embracing renewable energy. Delayed approval of RFPs has hindered renewable energy initiatives.

    The Ministry of Energy’s bid to raise the base tariff for the new fiscal year, potentially leading to record-high prices, underscores the urgency of integrating renewable energy into the national energy mix.

  • Govt gives nod to massive power tariff hike to meet IMF demands

    Govt gives nod to massive power tariff hike to meet IMF demands

    In a recent late-night development, the federal cabinet of Pakistan has given its approval for a significant increase in the electricity base tariff. This decision comes as part of the country’s efforts to meet the conditions set by the International Monetary Fund (IMF).

    According to the information provided by insiders, the federal government has decided to raise the basic power tariff for various consumer categories, with the increase ranging from Rs3 to Rs7.5 per unit.

    The National Electric Power Regulatory Authority (Nepra) played a pivotal role in this decision, as the cabinet approved the tariff hike based on Nepra’s recommendation.

    For non-protected residential consumers who use 1 to 100 units, the proposed increase is Rs3 per unit, which will elevate the current cost from Rs13.48 per unit to Rs16.48 per unit.

    Similarly, residential consumers using above 700 units might see a significant increase of Rs7.5 per unit, raising the existing rate from Rs35.22 per unit to Rs42.72 per unit.

    The government has now referred the matter to Nepra, which will conduct a public hearing to gather input and make a final decision before releasing an official notification. If approved, the new tariff will take effect from July 1.

    It is noteworthy that Nepra had already granted the federal government an increase of Rs4.96 per unit in the base electricity tariff on July 14.

    This move aligns with Prime Minister Shehbaz Sharif’s commitment to IMF Managing Director Kristalina Georgieva, assuring full adherence to the agreement made with the global lender, leaving no room for any violation.