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NEPRA directs power tariff cut nationwide
NEPRA directs power tariff cut nationwide

Express Tribune

time07-03-2025

  • Business
  • Express Tribune

NEPRA directs power tariff cut nationwide

The National Electric Power Regulatory Authority (Nepra) on Thursday directed ex-Wapda distribution companies (XWDISCOs) and K-Electric (KE) to reduce the power tariff by up to Rs3 per unit for consumers. The power regulator issued decisions based on the monthly fuel charges adjustments (FCA) for December 2024 in respect of KE and January 2025 for XWDISCOs. The power regulator directed XWDISCOs to reduce the tariff by up to Rs2.124 per unit and KE by up to Rs3 per unit for Karachi consumers in their March 2025 electricity bills. It is to be noted that in their petitions, KE suggested that it was ready to refund Rs4.95 per unit, while XWDISCOs were willing to return Rs2.0 per unit to their consumers. These decisions shall apply to all consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS), and prepaid electricity consumers of all categories who have opted for the prepaid tariff. The regulator also clarified that if any March 2025 bills are issued before the notification of this decision, the adjustment may be applied in the subsequent month. Rafique Shaikh, a member of the authority, handwrote a note on the decision, stating, "I am of the considered opinion that the impact of yet another violation of the Economic Merit Order (EMO) should not be passed on to consumers (i.e. around Rs1.5 billion)." In the case of DISCOs other than KE, the power regulator noted that after the recent tariff rebasing and the re-targeting of power subsidies—resulting in the creation of a protected tariff category—the subsidy for non-protected residential and agricultural consumers has been significantly reduced. In light of this, and considering the submissions of the Ministry of Energy, Nepra has decided to pass on the negative FCA to all non-protected residential and agricultural consumers.

Govt to cut agri power tariff
Govt to cut agri power tariff

Express Tribune

time26-02-2025

  • Business
  • Express Tribune

Govt to cut agri power tariff

Listen to article The government has decided to pass on the reduction in electricity prices on account of fuel cost adjustment (FCA) to the agriculture sector and domestic consumers using up to 300 units per month. The Ministry of Energy (Power Division) has sent a letter to the National Electric Power Regulatory Authority (Nepra), asking it to implement the decision. In the communication, Power Division Minister Awais Ahmed Leghari called for passing on the relief to agricultural consumers and domestic users who were consuming up to 300 units per month. He recalled that the Economic Coordination Committee (ECC) had issued policy guidelines on May 21, 2015 that any reduction on account of monthly FCA would not be passed on to the domestic consumers who were already paying subsidised electricity tariff. The regulator, in its FCA decision on June 24, 2015, also decided on the non-applicability of negative FCA to non-time of use (TOU) domestic consumers of up to 300 units. Furthermore, its decision about non-applicability of negative FCA to agricultural consumers has been in effect since November 2010. The Ministry of Energy, through its letter dated June 9, 2021, issued policy guidelines for re-targeting power subsidies in future. In line with the guidelines, Nepra in its September 2021 decision created new protected and unprotected non-TOU domestic consumer categories. Since then, tariffs for the unprotected category have been increased gradually in line with the government policy. The power minister said that following tariff rationalisation, the policy of not passing on negative FCA to unprotected domestic consumers and agricultural consumers may not align with the principle behind past decisions. "It is requested that the authority may reconsider the non-applicability of negative FCA to unprotected domestic and agricultural categories," he said. Relief for KE consumers Separately, the consumers of K-Electric (KE) are set to enjoy a tariff relief of Rs4.95 per unit on account of FCA for December 2024. Nepra conducted a hearing on Wednesday to take decision on the request. The relief will be passed on to consumers in March 2025 bills. Its aggregate amount is calculated at Rs4.94 billion. Since September 2024, this is the fourth consecutive negative FCA being passed on to KE customers. The relief requested for November 2024 was Rs4.98 per kilowatt-hour (kWh), preceded by Rs0.27 per kWh for October and Rs0.16 per kWh for September. At the hearing, various stakeholders including consumer representatives discussed KE's historical FCA and their impact, electricity procurement and generation costs. KE officials said the negative FCA for December 2024 was driven by zero furnace oil consumption, a lower share of re-gasified liquefied natural gas (RLNG) and increased supply from Central Power Purchasing Agency-Guarantee (CPPA-G). Furnace oil use was zero against the reference proportion of 13%, RLNG consumption was 19% against the reference proportion of 21% while power offtake from CPPA-G increased from 52% to 74%. KE submitted the hourly data of economic merit order along with responses to the queries made by Nepra. Jehanzaib, a Karachi-based consumer, inquired about FCA comparisons between KE and ex-Wapda distribution companies (DISCOs) over the past few years. In response, Nepra Member Technical from Sindh Rafique Ahmed Shaikh mentioned that KE had provided greater FCA relief to consumers in the last two years compared to other DISCOs and emphasised that FCA decisions were made transparently and applied across all DISCOs. Another customer asked for the negative FCA to be accounted for in the summer, especially to offset high electricity bills due to increased demand during those months. Discussions were also held on the status of KE's Bin Qasim Power Station-I (BQPS-I) units 1 and 2, with Arif Bilwani seeking clarification on whether the units were operational. KE officials responded that while an extension request was submitted to the regulatory authority for making the units operational, no decision had been notified so far and no cost had been claimed for those units. Umer, who represented a think tank, emphasised the importance of negative FCA for reducing electricity costs for consumers. He commended Nepra's approach of gradually adjusting the fuel cost relief, citing the November FCA, rather than passing on the entire amount in one go. "This strategy will help balance future costs and shield consumers from sudden price spikes," he said. Umer was of the view that such a measured approach would contribute to greater stability and sustainability in electricity prices. Building on the same perspective, an energy correspondent appreciated Nepra for its futuristic approach. He inquired about the outstanding balance, which was yet to be adjusted, responding to which Nepra officials said Rs5 billion out of Rs13 billion had already been incorporated.

K-Electric requests Rs4.95 per unit reduction for December, NEPRA reserves decision
K-Electric requests Rs4.95 per unit reduction for December, NEPRA reserves decision

Express Tribune

time26-02-2025

  • Business
  • Express Tribune

K-Electric requests Rs4.95 per unit reduction for December, NEPRA reserves decision

Listen to article The National Electric Power Regulatory Authority (NEPRA) has reserved its decision on K-Electric's request to reduce electricity prices by Rs4.95 per unit for the month of December under the monthly fuel adjustment. The decision will be announced later after a thorough review, Express News reported. The hearing was conducted regarding K-Electric's application for the December fuel adjustment, during which the utility company requested a Rs4.95 per unit decrease in electricity rates. K-Electric also sought adjustments for arrears amounting to Rs5 billion. K-Electric argued that it has accumulated Rs5 billion in arrears due to partial load, open cycle, and startup costs, and requested that this amount be provided. However, the move was met with strong opposition from K-Electric consumers. One consumer stressed that the full benefit of the monthly fuel adjustment should be passed on to the public. Concerns were also raised about the ongoing issue of load shedding in commercial areas of Karachi and the non-implementation of the industrial support package in the city. NEPRA officials noted that K-Electric has challenged the industrial support package in court. K-Electric representatives stated that in December, the company generated electricity at a rate of Rs18.60 per unit from its own resources, while the price of electricity from the Central Power Purchasing Agency (CPPA) was Rs9.60 per unit. After completing the hearing on K-Electric's request, NEPRA reserved its judgment, which will be issued after a review of the data and calculations. A final decision and notification will follow.

K-Electric seeks Rs4.95/unit tariff cut
K-Electric seeks Rs4.95/unit tariff cut

Express Tribune

time19-02-2025

  • Business
  • Express Tribune

K-Electric seeks Rs4.95/unit tariff cut

Electricity consumers in Karachi are set to enjoy relief as K-Electric (KE) has sought a Rs4.95 per unit reduction in power tariffs for December 2024 due to fuel charges adjustment. The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on February 26 to consider KE's request for a negative fuel charges adjustment (FCA), according to industry sources. According to KE's petition, the adjustment is based on the interim reference tariff of March 2023, resulting in a total reduction of Rs4.94 billion in fuel costs. In addition to the FCA adjustment, KE has requested NEPRA to consider an additional adjustment of Rs5 billion for fuel costs incurred from July to December 2024. The power utility argues that the amount is pending due to partial load, open cycle, degradation curves and startup costs. It has urged the authority to allow the adjustment to prevent a future burden on consumers. As per details, NEPRA has framed three key questions for deliberation during the hearing, including whether the requested FCA is justified and whether KE has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources. It will further deliberate over whether the request of KE to consider adjustment of accumulated actualisation of fuel cost on account of partial load, open cycle and degradation curves along with startup cost from July to December 2024, from the negative fuel cost variation is justified.

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