ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Tuesday approved positive adjustments in Fuel Charges Adjustment (FCAs) of Distribution Companies and K-Electric for January 2023 and negative adjustment in QTA of KE for second quarter of 2022-23.
The authority announced its indicative decisions after two separate public hearings, officiated by Chairman Nepra Tauseef H Farooqi, Member Sindh Rafique Ahmad Shaikh, Member KP Maqsood Anwar Khan, Member Balochistan Mathar Niaz Rana and Member Punjab Amina Ahmed.
CPPA-G had sought positive adjustment of Rs 1.17 per unit in FCAs to raise Rs 9.6 billion from Discos consumers; however, after some adjustments, the Authority calculated positive adjustment of Paisa 47.79 per unit. CPPA-G has also sought previous adjustments, of which claims of over Rs 1.5 billion have already been verified. If this amount is included, impact of FCA will be up to Paisa 99 per unit. The positive adjustment will be applicable to all consumers, excluding lifeline consumers and electric vehicle charging stations.
In another hearing, the Authority approved negative adjustment of Rs 7.36 per unit in QTA of KE power utility company for second quarter of FY 2022-23, after which the amount of subsidy will be Rs 2 per unit, reduced from Rs 16 per unit due to reduction in cost of generation.
The Regulator also approved indicative positive adjustment of Rs 1.71 per unit for January 2023 against request of Rs 2.70 per unit. However, the amount of the negative adjustment can be altered if some pending adjustments are allowed by the Authority after verification.
During the hearing arguments were offered on generation of cheap electricity which can bring down cost of electricity as in January KE’s own generation cost was Rs 21.06 per unit whereas cost of electricity from external sources was Rs 11.98 per unit. Tanveer Barry, representative from Karachi chamber, said that QTA of KE for second quarter (Oct to Dec) of current fiscal year is Rs 7.336 per unit negative whereas QTA for first quarter was Rs 7.833 per unit negative but not passed on to consumers.
Copyright Business Recorder, 2023