39 paisa increase in KE tariff

MUSHTAQ GHUMMAN

National Electric Power Regulatory Authority (Nepra) on Thursday approved an increase of 39 paisa per unit increase in tariff of Karachi-Electric for June 2016 over March 2016 under quarterly fuel adjustment mechanism. This decision was taken at a public hearing held in Nepra headquarters. The power utility had sought an increase of 45 paisa per unit in tariff across the board except lifeline consumers. However, the regulator refused to allow KE to recover the increased fuel cost of Bin Qasim units 3 and 4 from consumers.

Nepra observed that since both units are no more part of KE after amendment in KE's generation licence, hence, increase in fuel cost cannot be passed on to the consumers. According to KE management, fuel cost variation of KE's own was Rs 794 million whereas fuel cost variation of external generation sources was Rs 53.873 million, totalling it to Rs 740.132 million.