Nepra moved for over Rs10 per unit hike in K-Electric tariff

• Request made under sections 7 and 31 of the NEPRA Act.
• If request is okayed, KE consumers will be charged Rs10.32/unit.
• IT will be recovered in 3 different quarterly adjustments for FY22-23.

The Energy Ministry Monday reached out to the National Electric Power Regulatory Authority (Nepra) for an increase of Rs10.32 in three quarterly tariff adjustments (QTAs) for K-Electric consumers, Geo News reported.

The request by the ministry has been made under sections 7 and 31 of the Nepra Act, 1997 read with rule 17 of Nepra Tariff (Standards and Procedure) Rules, 1998.

In its request to the power regulator, the ministry has sought the application of periodic adjustments for the second quarter of FY 2022-23 for XWDISCOs of Rs.0.4689 per kilowatt hour (kWh), on KE consumers in order to maintain uniform tariffs across the country.

If the ministry's request is approved, KE consumers will be charged Rs10.32 per unit, which will be recovered in three different quarterly adjustments for 2022-2023.

The request for an increase of Re0.47 per unit will be applied in quarterly adjustment for October to December 2022, while the request for recovery of Rs4.45 per unit will come under quarterly adjustment for July to September 2022.

The quarterly adjustment for April to June 2023 is requested to be increased by Rs5.40 per unit.

The charges, as per the ministry’s request, would be made in September and October 2023.

"The MoE has requested to issue separate [Schedules of Tariffs] SoT for KE with the prospective application of applicable uniform rates after incorporating tariff rationalisation," a notice of hearing, issued by Nepra, read.

The request seeks that the adjustment be applicable to the consumption of power in April, May and June 2023, which should be recovered from consumers in September, October and November this year, respectively.

The Energy Ministry also submitted policy guidelines for the uniform application of quarterly adjustments on XWDISCOs and KE consumers.

Based on the policy guidelines, the ministry has requested Nepra to reconsider its decision issued on May 22, 2023, and accordingly issue separate SoT for KE with the prospective application of applicable uniform rates, after incorporating tariff rationalisation requested in the request on March 17, 2023 (Rs.1.4874 to Rs.4.4547/kWh for different consumer categories).

"The adjustment shall be applicable on the consumption of February and March 2023, to be recovered from consumers in September and October 2023, respectively," the notice read.

The ministry has requested that a hearing be provided for the purpose of providing detailed submissions.

During a hearing in the matter of the fourth quarterly adjustment of XWDISCOs for the FY 2022-23, held on August 23 this year, the Energy Ministry had submitted to apply the same on KE consumers as well, in light of the aforementioned policy guidelines.

Taking action on the ministry's request, the top power regulatory authority summoned a hearing on September 11 at 2pm.