K-Electric proposes increase of Rs0.97 per unit in price of electricity

• K-Electric seeks Rs1.76 billion for monthly fuel adjustment, NEPRA says.
• A hearing in this regard will be held on September 29 at 10am through Zoom.
• GIDC for the month of August 2021 will be claimed as per the final decision of SHC in the matter.

ISLAMABAD: K-Electric has requested National Electric Power Regulatory Authority (NEPRA) to increase the price of electricity by Rs0.97 per unit.

According to a notification issued by the regulatory authority on Wednesday, K-Electric has made the request for fuel adjustment charges for the month of August.

The electric company has sought Rs1.76 billion for monthly fuel adjustment, NEPRA said.

A hearing in this regard will be held on September 29 at 10am through Zoom.

In the notification, NEPRA said that for the hearing, two issues have been framed to be discussed — including whether the requested fuel price variation is justified and whether the KE has followed the merit order while giving dispatch to its power plants as well as power purchase from external sources.

In a letter written to NEPRA dated September 13, the KE stated: “The calculation for the month of August 2021 is based on CPPA-G’s latest fuel cost determined by NEPRA for the month of July 2021 and it is subject to adjustment based on the determination for August 2021 to be issued by NEPRA.”

“Moreover, instalment of Gas Infrastructure Development Cess (GIDC) arrears amounting to Rs762 million per month is being billed by SSGC as per Supreme court order dated November 2, 2020,” it read.

The power company mentioned that NEPRA in its FCA decision for the month of June 2021 has stated “considering the fact that K-Electric has obtained stay order from the SHC in the matter, [it has] decided not to allow any amount on account of GIDC till final decision by the SHC in the matter”.

Accordingly, GIDC for the month of August 2021 will be claimed as per the final decision of SHC in the matter.