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KE tariff adjustment: Power Division to approach Nepra

  • Nepra recommends a uniform rate for the second quarterly adjustment of FY2021-22 for consumers of distribution companies for a three-month period
Published July 24, 2022
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ISLAMABAD: Power Division is to approach the National Electric Power Regulatory Authority (Nepra) for a Quarterly Tariff Adjustment (QTA) adjustment of Rs 1.55 per unit in KE tariff to be recovered in three months, well-informed sources told Business Recorder.

The Economic Coordination Committee (ECC) of the Cabinet, in its meeting on July 20, 2022 approved an increase of Rs1.55 per unit in the tariff of KE aimed at bringing its tariff in line with the uniform tariff policy under Quarterly Tariff Adjustment.

Under section 31(7) of the Nepra Act, Nepra in its determination of June 16, 2022 has determined periodic adjustment in tariff for the 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.

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 the incorporation of direct/ indirect subsidies. Accordingly, KE's applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country. This will result in a tariff increase of Rs1.5547/unit with a recovery period of three months.

KE’s Fuel Charges Adjustment: Consumers to bear Rs22.25bn additional burden

The sources said, in the light of proposals approved by the ECC, Power Division will approach Nepra to issue a revised Schedule of Tariffs determined for the quarter of October to December 2021 or incorporate it in the latest Schedule of Tariffs 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.

The approved adjustments shall be recovered from consumers in August 2022, September 2022, and October 2022, respectively. According to sources, ECC also recommended that any change in tariff of the Discos shall also automatically be applied to KE. However, Power Division noted that it would require approval of the Federal Government. The ECC also inquired the status of the solar policy. The Minister for Power noted that the Power Division shall brief the ECC on solar policy in its next meeting.

Copyright Business Recorder, 2022

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