ISLAMABAD: While setting aside concerns of business community, National Electric Power Regulatory Authority (Nepra) has approved an increase in tariff of KE ranging from Rs 1.49 per unit to Rs 4.46 per unit under QTA to maintain uniform tariff across the country.
The increase in domestic consumers’ tariff will be from Rs 1.4874 per unit to Rs 3.2116 per unit depending upon consumption of electricity whereas commercial consumers, general services and industrial consumers will pay over Rs 4 per unit as QTA. This adjustment will be applied on electricity consumption in October, November and December 20222 and January 2023. The QTA adjustment will be recovered in bills from January to April 2023.
Power Division, in its motion had submitted that 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.
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Accordingly, KE applicable uniform variable charge is also required to be modified so as to recover the revenue requirements of KE, determined by the Authority consistent with the Discos which had been approved by the Federal Government and it was decided that the same be submitted to the Authority for consideration in terms of the provisions of the Act.
On December 27, 2022, Federal Government during the hearing reiterated its submissions made in the motion and submitted that Nepra determined QTA of Discos for the 4th quarter of FY 202 1-22. Pursuant to notification of Discos, the Power Division filed the motion with respect to recommendation of consumer end tariff, to charge the same amount from the consumers of K-Electric to make tariff uniform.
Upon inquiry from the Authority to apply the quarterly adjustments determined for Discos, automatically to K-Electric at the time of its determination, the Power Division submitted that Discos’ quarterly adjustments are determined and notified by the Authority, so the same is applied automatically.
However, in case of K-Electric, for the purpose of making the tariff uniform, approval is sought from the federal government. The Authority directed the Ministry to streamline the process of application of quarterly adjustments on KE consumers, in order to avoid the timing difference, so that tariff across the country is made uniform in true sense.
The representatives of consumers from Karachi hailing from business community and other categories opposed any further financial burden. Zubair Motiwala submitted during the hearing, that cost of doing business/ cost of manufacturing has increased, resulting in decrease in exports by 9%, which are expected to further go down by 25-30% in December.
K-Electric is not a Disco by any means; therefore, it would not be justified to pass on the proposed quarterly adjustment on K-Electric consumers. He also stated that K-Electric has obtained stay order against the incremental consumption package from the Honourable Sindh High Court (SHC), whereas in the rest of the country, the industrial consumers are getting the benefit of the incremental package.
Copyright Business Recorder, 2023
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