Latest news with #Rs2.99
Express Tribune
4 days ago
- Business
- Express Tribune
Nepra allows relief for Karachi, raises tariff for the rest
The National Electric Power Regulatory Authority (Nepra) on Thursday issued two separate notifications, reducing the power tariff by Rs2.99 per unit for the consumers in Karachi, while increasing the rate by Rs0.93 per unit for the rest of the country. The changes in the tariff had been done on account of fuel adjustment for the month of March in case of Karachi and for the month of April for other parts of the country. In any case, the new changes would be reflected in the current month's electricity bills. According to one notification pertaining to the tariff of the K-Electric, the authority "decided to allow a negative FCA of Rs2.9898/kWh (negative Rs4.045 billion) for March 2025, to be passed on to the consumers in the billing month of June 2025". Nepra said the negative FCA would apply to "all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS) and prepaid electricity consumers of all categories who opted for pre-paid tariff". It said that the KE would reflect the fuel charges adjustment in respect of March in the billing month of June. "The adjustment would be shown separately in the consumers' bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains," it added. According to a separate notification, the authority "has reviewed and assessed a National Average Uniform increase of Rs0.9306/kWh in the applicable tariff for Discos [Distribution Companies] on account of variations in the fuel charges for April". The notification added that the FCA should apply to all the consumer categories except lifeline consumers, protected consumers, EVCS and pre-paid electricity consumers of all categories who opted for prepaid tariffs. (WITH INPUT FROM NEWS DESK)
Express Tribune
23-05-2025
- Business
- Express Tribune
NEPRA okays Rs3.84/kWh tariff for KE
Prior approval to NEPRA K-electric consumer may seen a huge relief over electricity bills. PHOTO: FILE The National Electric Power Regulatory Authority (Nepra) has approved a distribution tariff of Rs3.84 per kWh for K-Electric for the fiscal years 202324 through 202930. K-Electric had requested a transmission tariff of Rs2.99 per kWh along with the Rs3.84 per kWh distribution tariff. These decisions were made following detailed public hearings, technical evaluations, and feedback from a broad range of stakeholders, including industry representatives, consumer groups, and public forums. The authority had earlier issued its decision for KE's generation tariff in October 2024. The tariff determinations do not directly impact end-consumer rates, which are governed under the uniform tariff policy notified by the federal government. K-Electric had submitted tariff petitions for generation, distribution, transmission, and supply businesses following the expiry of its previous Multi-Year Tariff (MYT) in June 2023. The new MYT spans seven years and is designed to provide long-term financial clarity essential for capital investment and operational stability. The power utility proposed a distribution tariff for FY 202324, covering components such as return on rate base (RoRB), operations and maintenance (O&M), amortization, and working capital. NEPRA evaluated several critical factors, including KE's request for a USD-pegged return on equity (RoE) at 16.67%, indexing mechanisms for losses and capital costs, and one-time adjustments tied to the previous MYT period (201723). The RoE of 14% has been allowed in principle with indexation. Industry representatives called for shorter control periods with performance-linked penalties. NEPRA did not allow KE's request to adjust distribution loss targets based on changes in its sales mix across voltage levels. The regulator maintained that performance benchmarks must be uniform across the sector, and KE's approved loss targets would remain unchanged despite its argument that shifting sales mix dynamics warrant reconsideration. Accordingly, annual loss reduction targets were fixed and must be achieved without upward revisions, reinforcing accountability and performance discipline. In terms of capital structure, NEPRA maintained a notional 70:30 debt-to-equity ratio for both tariffs, consistent with sectoral benchmarks and regulatory norms, despite KE's actual ratio differing. The authority has allowed KE to recover the cost of foreign debt based on 3-month LIBOR or SOFR plus a 4.5% spread, including applicable hedging costs, and to claim exchange rate variations on both interest and principal for unhedged loans. KE's actual recovery performance will be closely monitored throughout the control period to ensure service integrity. The regulator allowed a 12% RoE for its transmission segment, recognizing the utility's investment requirements and risk exposure. Stakeholders echoed concerns, particularly around the inclusion of taxes as pass-through items and system inefficiencies. KE's request to actualize the cost of debt, including hedging premiums, was accepted in principle by NEPRA, with actual costs to be verified at the time of adjustment.
