ISLAMABAD, Aug 5: Fretting about power shortages and breakdowns in hot and humid conditions, consumers in Karachi will have to pay 29 paisas more for each unit of electricity they consume from now on.
The increase in charges has been allowed by the National Electric Power Regulatory Authority (Nepra) on the request of Karachi Electric Supply Corporation (Kesc) that would enhance monthly bills between Rs80-100 for an average household consuming up to 300 units.
“In order to compensate KESC on account of variation in fuel price, cost of purchase of power and CPI indexation in operation and maintenance cost, the authority (Nepra) has decided to allow a uniform increase in consumer-end tariff for all consumer categories by Paisa 29 per kWh”, Nepra said. The tariff for consumers using up to 50 units per month will remain unchanged.
Under the rules, the KESC tariff is subject to revision every three months to compensate the utility for variation in the fuel price and cost of power purchased, and every year in July for indexation due to consumer price index (inflation).
In its announcement, Nepra said about 4.5 per cent tariff increase had been allowed due to rise in the cost of fuel, power purchased from producers and general inflation. This is the maximum increase in tariff Nepra can allow in a given quarter. The federal government is required to notify the new tariff within 14 days, which can otherwise provide equivalent subsidy if it opts to avoid political backlash ahead of elections.
Nepra said that the maximum adjustment that could be allowed in a quarter due to variation in fuel price was 2.5 per cent and due to variation in power purchase price 1.5 per cent of the overall average sale rate. The combined effect thus works out is paisa 23.79 per kwh (unit). The leftover paisa 3.11 per unit would be adjusted in the next quarterly adjustment due on October 1, 2007.
According to KESC’s July 9 request, the variation in fuel cost and generation mix comes to Rs1.53 billion or 14.51 paisa per kwh and variation in cost of purchase of power Rs1.307 billion or paisa 12.39. The combined effect thus worked out to be Rs2.84 billion or paisa 26.90 per unit, Nepra said. The regulator said that KESC had applied a fixed rate of Rs3.69 per unit for purchase of electricity from the National Transmission and Dispatch Company — a corporate entity of Wapda. Nepra said that the change in KESC’s tariff could only be made on the basis of actual payments made to the NTDC on account of change in fuel price and power purchase cost. However, the KESC did not make any payment to the NTDC nor it provided invoices to that effect.
