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MIT A Rise in Electricity Tariff for Karachi

NEPRA approves K-Electric request of rise in Tariff by 57.661 paisa per unit for November 2015.

MTRPK Desk: The National Electric Power Regulatory Authority (Nepra) allowed K-Electric to increase tariff to 57.661 paisa per unit for November 2015 under fuel adjustment mechanism in a public hearing on the tariff.

The public hearing was presided over by Chairman Nepra, Brigadier (Retd) Tariq Saddozai and Abdul Rauf Yousaf represented the K-Electric.

The fuel cost variation of K-E’s own generation was PKR 38.291 million in November 2015 over September, 2015 whereas fuel cost variation of external generation sources was PKR 738.884 million, totaling to PKR 700.593 million. K-Electric sent out 1.215023 billion units during this period and if these units are calculated at PKR 700.593, the increase is calculated at 57.661 paisa per unit, Abdul Rauf Yousaf informed the NEPRA.
The per unit cost of electricity being purchased from the Central Power Purchasing Agency (CPPA) was PKR 5.61 per unit in November 2015 as compared to PKR 3.55 per unit in September, showing an increase of PKR 1.35 per unit.

On the other hand the percentage of hydropower generation in November 2015 was less due to which the rates of electricity produced by the NTDC were higher as compared to previous months, September 2015.

Abdul Rauf Yousaf stated that the power utility faced a shortfall of 450 MW in November for which load shedding was done.

The Nepra Chairman observed that KE has the generation capacity to meet consumers’ demand and load shedding was deliberate especially in site area.

The claim of KE representative that KE did not get generation from its own plants due to low gas pressure was challenged by the Nepra officials who counterclaimed that gas pressure was low in the evening or night but the KE did not get electricity from its own plants during the day time.

Nepra questioned the KE representative to clarify whether the main reason for load shedding was low gas pressure or expensive generation, to which Abdul Rauf Yousaf stated that the loadshedding, was done due to both factors. He revealed that K-electric received 80 percent electricity from NTDC whereas 20 percent power was generated from its own resources.