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Print

Rs1.55/unit hike in KE tariff likely

  • Move aimed at bringing company's tariff in line with uniform tariff policy under Quarterly Tariff Adjustment
Published July 20, 2022
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ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet is to approve an increase of Rs1.55 per unit in the tariff of K-Electric (KE) aimed at bringing its tariff in line with the uniform tariff policy under Quarterly Tariff Adjustment (QTA) to be recovered in three months.

Official sources told Business Recorder that under section 31(7) of the Nepra Act, Nepra in its determination of June 16, 2022 has determined periodic adjustment in tariff for second quarter of FY 2021-22 for distribution companies. In light of this determination, Nepra has recommended a uniform rate for the second quarterly adjustment of FY2021-22 for the consumers of distribution companies for a three-month period.

The sources said, in accordance with the National Electricity Policy, 2021, the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatization) through incorporation of direct/indirect subsidies. Accordingly, KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country. This will result in tariff increase of Rs1.5547/unit with recovery period of three months.

Power Division will approach Nepra to issue revised Schedule of Tariff determined for the quarter October to December 2021 or incorporate in the latest Schedule of Tariff being determined by Nepra for the quarter January to March 2022, after incorporating tariff rationalization and upon approval of Nepra, notify it in the official gazette by way of modification in SRO Nos. 575(1)/2019 as modified from time to time.

ECC approves Rs149bn payments to IPPs, KE

The sources maintained that such adjustments shall be recovered from consumers in August 2022, September 2022 and October 2022, respectively.

Finance Division, in its comments, has supported the proposal subject to the condition that there will be no financial implication in respect of subsidy to K-Electric on the part of GoP.

K-E, in its views has also stated that it has no objection to the proposal of Power Division as it is in line with the uniform tariff policy.

Copyright Business Recorder, 2022

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