ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday approved an 81 paisa per unit increase in fuel based tariff for K-Electric (KE) for one month to be recovered from consumers in bills for April.

Presided over by Nepra Vice Chairman Habibullah Khilji, a public hearing was informed by a KE team that fuel increase had been caused by comparatively expensive power purchase from the National Transmission and Dispatch Company and reduced gas supply by the Sui Southern Gas Company Ltd in January.

Take a look: Nepra approves Rs2.97 cut in power tariff

KE’s director finance Mohammad Amir told the regulator that its fuel cost increased by Rs810 million even though its own power plants reduced fuel cost by Rs240m. It said the increase was mainly because of power purchased from the NTDC at Rs9.57 per unit, which was Rs2.99 paisa per unit costlier than December.

Mr Khilji asked why the KE’s power generation had dropped to 430.30 million units in January even though it had produced 480.70m units in December and argued that KE should have utilised its own plants to full capacity.

The KE representatives, however, explained that the company’s Port Qasim power plant was on scheduled outage for repair, resulting in lower generation. On top of that, the SSGCL also provided lower gas supply to the power utility.

However, the increase in fuel cost will not be applicable to lifeline consumers using 50 units per month.

Published in Dawn, March 20th, 2015

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