ISLAMABAD: National Electric Power Regulatory Authority (Nepra) will hold a public hearing on Wednesday (today) on a proposal of KE regarding increase in its tariff by Rs 1.54 per unit in mid-term review of multi-year tariff.
The Authority in its determination of July 5, 2018 regarding multi-year tariff (MYT) of KE envisaged that a mid-term review to the extent of allowed investments only shall be carried out after completion of 3.5 years of the tariff control period of MYT. Accordingly, KE in its letter of March 11, 2020 filed a petition with the Authority for mid-term review of its MYT.
KE, in its petition has sought following relief from the Authority : (i) an additional investment of Rs 143.868 billion other than Rs 298.915 billion allowed by the Authority in its MYT by revising the total investment to Rs 442.783 billion;(ii) to increase the impact of exchange rate on allowed Return on Equity (RoE) component from 17.05 per cent to 41.94 per cent;(iii) an increase of Rs 0.65 kWh in the base rate on account of cost of working capital ( government entities);(iv) an increase of Rs 0.10 kWh in the base rate on account of revision in the cost of debt;(iv) an increase of Rs 0.29/ kWh in the base rate on account of revision in the sentout growth and ;(v) an increase of Rs 0.50/ kWh in the base rate on account of normal cost of working capital.
The Authority is likely to reserve its judgment on the mid-term tariff review petition of KE for a couple of weeks.
Copyright Business Recorder, 2020