ISLAMABAD: Karachi Electric (KE) has sought an increase of Rs 5.27 per unit in its FCA adjustment to recover Rs 8.592 billion from consumers for the month of March 2022 under monthly FCA mechanism.

National Electric Power Regulatory Authority (Nepra) is scheduled to conduct a public hearing on KE’s request.

According to petition filed by Ayaz Jaffar Ahmed, Director Finance KE, the calculation for the month of March 2022 is based on CPPA-G’s invoice for the month of February 2022 and it is subject to adjustment based on determination for March 2022 to be issued by Nepra.

Moreover, installment of GIDC arrears amounting to Rs762 million per month is being billed by SSGC as per Supreme Court order of November 02, 2020. However, Nepra in its FCA decision for the month of June 2021 stated “considering the fact that K-Electric has obtained stay order from the Honourable SHC in the matter, it has been decided not to allow any amount on account of GIDC till final decision by the SHC in the matter”.

Accordingly, GIDC for the month of March 2022 will be claimed as per the final decision of SHC in the matter.

KE claims that it dispatches as per Economic Merit Order from its own generating units (with the available fuel resources) and imports from external sources. However, the cost of fuel and power purchase claim does not include any amount of late payment surcharge/ mark-up/ interest. In the MYT, Nepra determined provisional heat rates for KE’s generating plants and directed KE to conduct fresh heat rate test for its plants, based on which final heat rates will be determined by Nepra.

System generating 50pc less electricity

In this regard, Nepra has issued its decision on heat rate for BOPS - II plant on January 1, 2020 and accordingly the calculations are based on heat rates determined therein. With respect to heat rate of KGTPS, Nepra issued its determination on January 18, 2021 against which KE filed review motion. Nepra issued its decision on the review motion on November 05, 2021. Accordingly, calculations for the month of March 2022 are based on heat rates determined therein with request to adjust the impact of prior period in the pending quarterly tariff variation.

With respect to heat rates of KCCP & SGTPS, Nepra issued its determination on September 2, 2020 and January 18, 2021 respectively, against which KE has filed review motions. The required adjustment will be incorporated after the final heat rates are determined. Moreover, heat rate test of BOPS-I plant has been conducted and independent engineers’ reports have been submitted to Nepra. The working for required adjustment will be submitted to Nepra after determination of final heat rates of BOPS-I based on the test results.

Copyright Business Recorder, 2022


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