SLAMABAD: The K-Electric has requested the National Electric Power Regulatory Authority (Nepra) to permit it a significant Rs14.533/unit higher collection from power consumers due to a quarterly fuel price fluctuation for April to June 2022.
In a similar vein, the company also informed the power regulator that it was prepared to refund power users Rs3.476/unit after charging them a higher rate in July 2022 despite that month’s lower per-unit production cost.
Due to a drop in fuel costs in July 2022, the monthly fuel charges adjustment (FCA) is lower than it was the previous month. When compared to June 2022, the cost of power obtained from CPPA-G in July 2022 was lower by 31%. Similar to RLNG, the price fell by 16% in July 2022 compared to June 2022. For furnace oil, the price in July 2022 increased by four percent over June 2022
A spokesman of K-Electric meanwhile said, “The impact of quarterly adjustments is usually not passed to consumers under the uniform tariff policy applicable across the country. However, the final decision rests with the Federal Ministry of Energy, the Government of Pakistan, and the NEPRA.”
The federal government builds quarterly tariff adjustments on account of variations in the power purchase price, capacity charges, variable operation and maintenance costs, use of system charges, including the impact transmission and distribution losses, into the base tariff. Under the tariff mechanism, changes in fuel cost are passed on to consumers only on a monthly basis through an automatic mechanism.
The power regulator received two petitions from K-Electric asking for permission to charge these amounts to customers in order to cover fuel costs that the firm did not cover from January to March 2022 while compensating customers for high charges made in July 2022. K-Electric would be able to reimburse customers for Rs6.25 billion after the petitions are allowed under negative fuel charges adjustments (FCA) for the month.