KE ordered to refund Rs10bn charged extra in November

Published January 12, 2023
A technician from K-Electric fixes new electricity meters at a residential building in Karachi. — AFP/File
A technician from K-Electric fixes new electricity meters at a residential building in Karachi. — AFP/File

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday notified a cut in fuel cost for consumers of K-Electric by Rs7.43 per unit for one month and an increase in fuel cost for consumers of other distribution companies (Discos) by about 19 paise per unit.

The regulator said KE had sought a Rs7 per unit tariff reduction for electricity consumed in November but based on evidence it calculated the cut at Rs7.43 per unit, resulting in Rs10 billion relief to KE consumers.

The negative FCA would be adjusted in January bills. The revised rates would apply to all the consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, agriculture consumers and EVCS (Electric Vehicle Charging Station) users of K-Electric.

Nepra clarified that negative adjustment on account of monthly FCA would also apply to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level. It directed the KE to show adjustments separately in the consumers’ bills based on units billed to the consumers in the respective month to which the adjustment pertained.

The regulator noted that lower FCAs had resulted because of a decline in prices of gas by 6pc, RLNG 22pc and furnace oil 16pc when compared to prices in September.

Separately, the regulator also notified a 19-paisa per unit increase in FCA for electricity consumed in November 2022. It said the Central Power Purchasing Agency (CPPA) had sought an increase of Rs0.1938 per unit under monthly fuel cost adjustment for November. However, after scrutiny of data and evidence, the regulator allowed an increase of Rs0.1857 per unit.

The Discos would reflect the fuel charges adjustment in respect of November 2022 in January’s bills.

Published in Dawn, January 12th, 2023

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