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ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Monday gave its approval for recovery of additional amount of Rs 20 billion from KE consumers within three months through imposition of two QTAs of up to Rs 4.45 per unit as the government has reduced its subsidy.

The power regulator comprising Chairman, Tauseef H Farooqi, Member Sindh, Rafique Ahmad Shaikh, Member Khyber Pakhtunkhwa, Maqsood Anwar Khan, Member Balochistan, Mathar Niaz Rana and Member Punjab, Amina Ahmed officiated the public hearing. Power Division, which submitted Motion on Federal Government, was represented by Joint Secretary (Power Finance) Finance Division, Mehfooz Bhatti along with Naveed Qaisar from CPPA-G.

Power Division has filed two Motions for application of adjustment of QTAs to KE consumers which are as follow: (i) Rs 1.5547 per unit to be applied on consumption of July-August and September 2022 to be recovered in April, May and June 2023; and (ii) Rs 1.48 per unit to Rs 4.45 per unit for different consumer categories to be applied on consumption of February and March 2023 to be recovered in April and May 2023.

KE consumers: Govt files motion with Nepra for recovery of two QTAs of Rs6/unit

Karachi Chamber of Commerce and Industry (KCCI), which was represented by Tanveer Barry, rejected the proposal of federal government and requested Nepra, which itself claims it is a post office, to also side with the business community. The proposed increase for industry is Rs 6 per unit under the garb of QTA previous adjustments.

Arif Bilwani, another intervener, opined that if Nepra allows Federal Government’s Motion, it will be violation of Supreme Court decision. He also hinted that the decision would be challenged in the court.

Naveed explained that the government had increased tariff of Discos which was charged from July to September 2022. Nepra had determined KE’s tariff of Rs 43 per unit. It is now up to the government to extend or reduce amount of subsidy already being given to the consumers.

“Multiple times we can request the Authority to revise the KE’s tariff through Federal Government Motion as a substantial subsidy is being given to KE consumers. Whatever the government decides with respect to subsidy we will file a fresh Motion,” said Naveed.

He maintained that average tariff of domestic consumers is Rs 43 per unit. However, the government was charging Rs 7 per unit from protected domestic consumers using up to 200 units monthly who are 40 per cent of total domestic consumers. The remaining difference is being picked up through subsidy. It was noted that KE consumers are well aware that they are charged Discos tariff.

He further stated that no one is paying Rs 43 per unit. KE’s base tariff is Rs 28.23 per unit as after addition of new QTA adjustments it would be Rs 33.54 per unit. However, Discos tariff will be Rs 28.30 per unit which implies KE’s tariff would be higher by Rs 5.25 per unit for three months.

It was revealed that the government is also extending subsidy to industry of Karachi to equate them with consumers in other parts of the country.

Naveed explained as per Nepra’s decision of June 2022, subsidy of Rs 147 billion is being given to domestic consumers of KE, Rs 26 billion to commercial consumers, Rs 6 billion to schools, colleges, mosques, dispensaries, industrial consumers are receiving Rs 101 billion, housing societies Rs 7 billion, and agriculture consumers Rs 2.8 billion.

After removing QTAs, the amount of net subsidy will stand at Rs 150 billion for consumers of Karachi if tariff remains the same, he said.

Copyright Business Recorder, 2023


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Muhammad Ali Apr 04, 2023 09:20am
There is no country in the world except us where 18% line losses (thefts & leakage costs) are sucked from the honest consumers. Power stealers would never be punished as they are supported from within. Lack of supremacy of law is mother of evils which has swallowed three generations.
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