Nepra increases power tariff for K-Electric


Unlike the consumers of state-owned power distribution companies (Discos) who enjoy a tariff cut, the people of Karachi will face a 57 paisas per unit hike in power tariff on account of fuel adjustment for the month of November 2015.

However, the lifeline consumers in Karachi, using 50 units per month, have been exempted from this increase.

In view of the sharp decline in furnace oil prices in the international market, the National Electric Power Regulatory Authority (Nepra) had approved Rs 2.06 per unit cut in tariff for ex-water and power development authority (Wapda) discos for November 2015 under monthly fuel adjustment mechanism. However, Nepra allowed the K-Electric – the power distribution company for Karachi – to increase the tariff by 57 paisas per unit during a public hearing chaired by Nepra Chairman Tariq Sadozai on Tuesday. Management of the K-Electric had submitted a petition with Nepra seeking the tariff increase in view of a higher-than-estimated cost of fuel.

In the petition, the K-Electric had pointed out that it faced a fuel cost variation of Rs 700.593 million in its electricity generation from external resources.

During the hearing, the Nepra chief expressed serious concerns over not injecting 50MW power in the system. The K-Electric authorities admitted that their power plants were not operating at full capacity due to their load shedding policy.