KE April FCA: Nepra approves 5 paisa per unit negative adjustment

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has approved negative adjustment of Paisa 05 per unit in tariff of K-Electric (KE) for April 2023 under monthly Fuel Charges Adjustment (FCA) mechanism.

On May 31, 2023, the Authority conducted a public hearing to discuss consumption and generation data submitted by the power utility company including FCA claim which sought a positive adjustment of Paisa 49 per unit for April to recover Rs 474 million from its consumers.

K-Electric provided the plant-wise generation statistics sheet to provide information in terms of plant capacity, actual units generated, actual auxiliary consumption, net generation and bus bar sent outs, actual heat rates, fuel consumption and cost of fuel and generation cost per unit. In addition, K-Electric also provided copies of invoices raised by fuel suppliers and copies of invoices raised by IPPs.

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 Economic Merit Order (EMO).

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

In response, 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.

Copyright Business Recorder, 2023