ISLAMABAD: Rejec­ting K-Electric’s demand for 49 paise per unit increase, the National Electric Power Regulatory Authority (Nepra) on Friday ordered the Karachi-based power utility to refund 5 paise per unit it overcharged consumers in April under monthly fuel cost adjustment (FCA) mechanism.

The regulator has decided to allow the negative FCA for April to be reflected in June’s bills, said an order issued by Nepra.

The KE had sought to extract Rs740 million from consumers but the regulator worked out a Rs72m refund instead.

The cut mainly came from two heads. The regulator said The KE had used the rate of Rs10.3975/kWh as the cost of energy purchased from the national grid during the month but it was noted that Nepra had approved fuel cost component, in the matter of ex-Wapda Discos for the month at Rs.9.9950/kWh.

In view thereof, while working out the instant FCA of K-Electric, the rate approved for Discos has been incorporated for the energy purchased by K-Electric from the national grid.

“This has resulted in a decrease in total fuel cost by around Rs292.61m”.

The KE’s FCA claim of April for an amount of Rs526.45m, withheld on account of merit order violations over the period from June 2021 to March 2023, was also rejected as the “KE has failed to justify its claim”.

The order said the negative FCA will apply to all the consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, Agriculture Con­sumers and EVCS (Electric Vehicle Charg­ing Station) consumers of K-Electric.

Published in Dawn, June 17th, 2023