March 2023: Nepra approves Rs3.94 per unit positive adjustment for KE

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved positive adjustment of Rs 3.94 per unit for K-Electric (KE) for March 2023 under monthly Fuel Charges Adjustment (FCA) formula.

It had conducted public hearing on May 3, 2023 which was attended by representatives of the K-Electric including its financial and technical team.

Representatives from media and general public also attended the hearing. The KE in its FCA request submitted that calculation for the current month is based on CPPA-G’s requested fuel cost component for the current month and is subject to adjustment based on the final determination of Discos FCA.

KE seeks Rs4.50 per unit positive adjustment

The K-Electric, in its adjustment requests, certified that it despatched as per Economic Merit Order from its own generation units (with the available fuel resources) and import from external sources. It also certified that the cost of fuel and power purchase claims do not include any amount of late payment surcharge/mark-up/interest.

Tanveer Barry, a commentator, raised concerns regarding high FCAs during the summers of 2023. The KE responded that with the inclusion of BQPS-III, the overall generation cost will decrease.

Imran Shahid, a commentator, submitted the KE should not be operating inefficient plants which have out lived their lives and are resulting in higher generation cost.

The KE, while responding to the comments, submitted the KE has improved its overall generation fleet efficiency from 30% to 48% over the last 15 years. It was further explained by the KE that BQPS-I unit 1 and unit 2 will be decommissioned after 3 months and unit 5 and 6 will only be operated if they fall in the economic merit order to meet the load requirement.

The Authority carried out an in-house analysis of the data provided by K-Electric for the month, to work out the financial impact due to deviation from EMO.

Regarding the financial impact due to underutilisation of efficient plants namely KCCP, KGTPS and SGTPS etcon account of lower gas pressure, a letter was issued to the KE on September 16, 2021, whereby, it was directed to resolve its gas pressure/lower gas quantity issues within thirty (30) days.

In response, the KE noted that it is in the process of resolving the lower gas pressure issue, however, there are certain meetings with stakeholders that will take place in due course of time. As of now, no GSA has been finalized between KE and SSGC despite the directions of the Authority.

The positive adjustment shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers of the K-Electric. It shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains. The K-Electric shall reflect the fuel charges adjustment in respect of March 2023, in the billing month of May 2023.

Copyright Business Recorder, 2023