ISLAMABAD: The National Electric Power KE Regulatory Authority (Nepra) on Friday accepted an aggregate Rs2.73 each rise in K-Electric’s power rates for 4 quarterly modifications (April 2019 to March 2020) but this will certainly not impact the consumers.
“Since the federal government has a consistent tariff policy throughout the country consisting of K-Electric consumers, as a result, the effect of quarterly changes would be readjusted in the Tariff Differential Aid (TDS) of K-Electric, therefore might not have any kind of impact on customers,” the power regulator revealed.
An authorities said tariff modifications would certainly, nonetheless, include about Rs35bn TDS to the spending plan. The KE as well as Finance Department are already in dispute over Rs217bn subsidy asserts that also includes a significant chunk of interest/late settlement surcharge insurance claim unacceptable to Financing Division.
The KE had declared a quarterly tariff change (QTA) of Rs1.38 each boost in toll for April-June 2017 yet after particular disallowances, Nepra permitted 77-paisa each rise for the stated quarter. Similarly, the power energy had actually required concerning Rs1.44 per unit boost in QTA for July-September 2019 however the regulator enabled a higher increase of Rs1.97 per unit as a result of some amounts postponed in previous quarter.
For third quarter of October-December 2019, KE had recommended a decrease of about 12-paisa per unit however the regulatory authority allowed a smaller reduction of regarding two-paisa each. On the other hand, the regulatory authority enabled a boost of 61-paisa each higher toll change for January-March 2020 versus 23-paisa rise demanded by KE.
Thus in total, KE had actually demanded an increase of Rs2.93 per unit increase for four quarters entailing about Rs39bn but the regulator permitted a boost of Rs2.73 each or about Rs35bn.
Under the mechanism given in the decision, influence of modification in KE’s very own generation fuel price component as a result of variation in fuel prices, generation mix and volume needs to be passed on to the consumers straight in their month-to-month bills in the form of gas fees modification (FCA).
Likewise, influence of modification in the gas element of Power Purchase Cost (PPP) due to variant in gas costs and energy mix has also to be handed down to the consumers via month-to-month FCA.
However, the impact of month-to-month variants in KE’s own generations fuel cost element too power acquisition price for targeted T&D losses, not thought about in the regular monthly FCA, needs to be changed on quarterly basis. In addition, the monthly variations in the variable procedure and also maintenance and also fixed prices of the PPP, as enabled by the regulator are required to be readjusted on quarterly basis.
The influence of these variants is to be exercised based upon targeted units to be sold in the next quarter and to be adjusted in the timetable of toll.
The QTA for the stated period can not be made in the toll as a result of the federal closet decision that prices of power as well as gas would certainly remain unchanged till June 2020 due to Covid-19.