KE tariff hiked up to Rs4.45

Updated 28 Sep, 2023

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has increased KE’s tariff ranging from Rs 1.49 to Rs 4.45 per unit from different categories except lifeline consumers to be recovered in months of October and November 2023, in addition to already approved Rs 3.28 per unit to be recovered in six months.

The current determination of QTA for KE is for February and March 2023, which have already been implemented in Discos.

The impact of both QTAs will be around Rs 30 billion, i.e., new Rs 8 billion + previous Rs 22 billion.

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The authority conducted a public hearing on September 11, 2023, which was attended by the representatives of Power Division, K.Electric, and private sector.

According to Nepra, in view of the discussion, response of the MoE and the Policy Guidelines forwarded by the MoE, the Authority understands that the Federal Guidelines only envisage the 1 quarterly adjustment of FY 2022-23 and also for the future quarterly adjustments. Nothing has been mentioned in the Guidelines in terms of other pending quarterly adjustments, i.e., 2 & 3d quarters for the FY 2022-23.

After due deliberations, the Authority; therefore, has decided to allow application of first quarterly adjustment of FY 2022-23 ranging from Rs.1.4874 to Rs.4.4547/kWh for different consumer categories, except life line consumers, based on the consumption of February 2023 and March 2023, to be recovered from the consumers of K-Electric in months of October and November 2023, respectively.

According to the notification, Rs 1.49 per unit will be recovered from domestic consumers using up to 300 units per months whereas consumers using from 400 units and above will pay Rs 3.2116 per unit whereas other categories will pay Rs 4.45 per unit.

Regarding, quarterly adjustment for the FY 2022-23, i.e., Rs.0.4689/kWh, the Authority would process the same or any other such pending adjustment (3’s Quarter of FY2022-23), once the policy guidelines clearly stipulates for such quarters, which are pending recovery from KE consumers, prior to the formulation of policy guidelines.

Copyright Business Recorder, 2023

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