Latest news with #Rs5.02
Business Recorder
3 days ago
- Business
- Business Recorder
March 2025: Nepra allows Rs3 negative adjustment for KE consumers
ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has allowed negative adjustment of Rs 3 per unit for KE consumers for March 2025 and Rs 0.93 per unit positive adjustment for Discos consumers for April 2025 under monthly Fuel Charges Adjustment (FCA) mechanism. In this regard, NEPRA has issued separate notifications, according to which KE's negative adjustment and Discos positive adjustment will be effective in bills of June 2025. For Discos, NEPRA conducted a public hearing on May 29, 2025 for Discos and on on May 22, 2025 for K-Electric which was attended by representatives of industry and media. March FCA: KE seeks Rs5.02 interim negative adjustment According to determinations of Discos, Amir Sheikh, a commentator, submitted that this positive FCA has lowered the previously announced benefit of around Rs.7.7/kWh adversely impacting cost projections for many industrial consumers. He also questioned the dispatch of RLNG-based power plants despite the purported availability of local natural gas and pointed out that alternative suppliers, such as Mari Petroleum, may offer more cost-effective solutions. KE during the hearing also claimed an amount ofRs.15.2 billion, on account of partial load, open cycle and degradation curves along with startup cost for the period from July 2023 to March 2025. KE also submitted that BQPS-III and KCCP heat rate adjustment for previous MYT amounting to Rs.0.6 billion and Rs.0.2 billion are also pending. KE had sought negative adjustment of Rs 5.02 per unit for April 2025 to refund Rs 6.792 billion to its consumers. However, regarding the amount of Rs.15.2 billion on account of partial load, open cycle and degradation curves along with startup cost for the period from July 2023 to March 2025, the Authority has already provisionally retained an amount of Rs. 12.45 billion, from monthly FCAs from Nov. 2024 to Feb. 2025, in order not to over burden the consumers at a later stage for such pending costs. Thus, as of March 2025, an amount of Rs.2.74 billion is pending on account of partial load, open cycle and degradation curves along with startup cost, as per the claims of K-Electric. On the same analogy of not to over burden the consumers at a later stage and also to ensure timely recovery of prudent costs, the Authority has decided to provisionally withhold an amount of Rs. 2.74 billion from the worked out negative FCA of Rs. 5.0200/kWh (negative Rs. 6.79 billion) for the month of March 2025. NEPRA has allowed negative adjustment of Rs 2.99 per unit which will provide a relief of Rs 4 billion to the consumers of Karachi. Member (Tech) Rafique Ahmad Shaikh, has written additional notes on both the determinations in which he raised different issues. In his note on Discos FCA determination he said that the prolonged forced outage of Guddu's 747 MW Steam Turbine (Unit 16) has necessitated continued operation in open-cycle mode, resulting in additional costs of approximately Rs. 670 million (USD 2.38 million) for the month of April 2025 alone. Cumulatively, the financial losses attributed to this outage have reached approximately Rs. 113 billion (USD 402.14 million) since its outage from July 2022. Given the significance of the issue, the CEO of GENCO-II should be required to present a detailed update on the rehabilitation plan and the progress made on restoring Steam Turbine Unit 16 during each Monthly Fuel Cost Adjustment meeting. Copyright Business Recorder, 2025
Express Tribune
23-05-2025
- Business
- Express Tribune
Rs5.02 tariff cut for KE consumers likely
Listen to article The consumers of K-Electric (KE) are set to enjoy a tariff relief of Rs5.02 per unit on account of fuel cost adjustment (FCA) for March 2025, which has been requested by the power utility in its petition submitted to the National Electric Power Regulatory Authority (Nepra). In that regard, Nepra conducted a public hearing on Thursday. If approved, the KE consumers will enjoy a total relief of Rs6.79 billion. The regulator reviewed various operational and financial matters presented by KE, including cost claims, fuel use, system efficiency and measures against electricity theft in Karachi. KE CEO Moonis Alvi reiterated the utility's firm commitment to tackling power theft through all necessary measures, but highlighted that the efforts were often met with violent resistance from those engaged in unlawful practices. He pointed to violent mob attacks against the utility and its staff, including female employees. He said the company infrastructure remained under significant threat and recent incidents in P&T Colony and Nazimabad signalled the gravity of the situation, where even law enforcement agencies found it difficult to safely evacuate KE staff. There had been instances where employees were unable to leave office premises until the next morning, held hostage by mobs, he added. Alvi requested Nepra to urge citizens to refrain from electricity theft and, at the very least, begin paying their previous month's bills. The KE management stated that 70% of its feeders were exempt from load-shedding while the remaining network with high levels of theft and non-payment of bills continued to face scheduled outages. It cited infrastructure damage due to theft as a contributing factor to network faults. Disconnection drives were ongoing in the theft-prone areas amid public backlash including mob attacks. It clarified that disconnections should not be considered a fault in the system; those were largely disconnections because of non-payment. Nepra sought a month-wise breakdown of the generation cost claim of Rs14 billion submitted by KE as well as asked for detailed documentation under the partial cost adjustment categories. KE officials assured the regulator that the required breakdown would be provided. Questions were also raised about KE's furnace oil stock valuing at Rs5 billion for the Bin Qasim Power Station-I (BQPS-I), which had a dependable capacity of 350 megawatts. Nepra asked as to why power generation was still being planned based on residual fuel oil (RFO) if the plant was reportedly not operational. KE responded that maintaining the fuel stock was in accordance with the regulatory requirements and selling it at a loss would not be economically feasible. Regarding the generation mix, industrialist Rehan Javed emphasised the need for considering solar power projects in the upcoming Indicative Generation Capacity Expansion Plan (IGCEP) as there had been unofficial media reports about their exclusion; something that would be detrimental to consumers in terms of access to affordable electricity. Nepra dismissed the hearsay, saying no formal decision had been submitted so far and a public hearing would be conducted regarding the IGCEP. It would be early to share any opinion or judgement, it said. A consumer highlighted the KE's consecutive negative FCA since September 2024 and asked about its comparison with other power distribution companies (DISCOs). Nepra officials elaborated that currently the KE's FCA was benchmarked against the reference fuel cost of March 2023 at Rs15.99 and all adjustments were based on that, as per Nepra's approved mechanism. He pointed out that once the updated tariffs were approved, the difference in FCA rates compared to other DISCOs was expected to narrow. Responding to a question on fuel mix and the potential impact of natural gas availability, KE officials stated that access to local gas could significantly reduce generation costs. Local gas is priced around Rs9 per unit compared to Rs22-24 per unit for re-gasified liquefied natural gas. As demand rises during peak summer, both KE and Nepra reiterated the importance of transparency, regulatory compliance and collaborative efforts to improve service delivery.
Express Tribune
22-05-2025
- Business
- Express Tribune
K-Electric seeks tariff cut by Rs5 per unit
Listen to article K-Electric (KE) has requested a reduction of Rs5.02 per unit in the electricity tariff for March, officials said during a hearing at the National Electric Power Regulatory Authority (NEPRA) on Thursday. If approved, the reduction would provide consumers with relief worth Rs6.79 billion, KE representatives told NEPRA. The regulator completed the hearing on the fuel adjustment request and will issue a detailed decision after reviewing the data. The announcement comes as Karachi faces severe load shedding amid rising temperatures, sparking public frustration and criticism of KE during the NEPRA hearing. Consumers accused NEPRA of failing to enforce its consumer service rules and called for greater penalties against KE for extensive power outages. NEPRA member Rafiq Sheikh reprimanded KE officials over worsening load shedding, describing their distribution system as "very poor" and questioning the company's explanations. KE said its staff face attacks while disconnecting power over unpaid bills, with employees sometimes held hostage even in police presence. The company blamed load-shedding on frequent connection cuts. Sheikh rejected these justifications, stating he did not agree with the company's position. NEPRA has instructed its officials to obtain an inquiry report from KE that has not yet been shared.
Business Recorder
14-05-2025
- Business
- Business Recorder
March FCA: KE seeks Rs5.02 interim negative adjustment
ISLAMABAD: K-Electric has requested a provisional negative adjustment of Rs5.02 per unit under the Fuel Cost Adjustment (FCA) mechanism for March 2025, which would result in a refund of Rs6.792 billion to its consumers. According to the National Electric Power Regulatory Authority (NEPRA), KE submitted in its calculation sheet (Note-2) that, following the determination of generation tariffs for its power plants post-June 2023, it has provided data related to partial load, open cycle operations, degradation curves, and startup costs. KE has sought approval for Rs15.6 billion covering the period from July 2023 to March 2025. Out of this amount, the Nepra has already set aside Rs9.6 billion in its FCA decisions for the months of November 2024 to January 2025. Feb FCA: Nepra indicates Rs3.64 relief The KE has also requested that the Nepra consider adjusting the accumulated actual fuel cost variations—specifically related to partial load, open cycle operations, degradation, and startup costs—from the negative fuel cost variation pool. This, KE argues, would ensure that consumers are not burdened with these costs at a later stage. The NEPRA has scheduled a public hearing on May 22, 2025 to deliberate on the proposed adjustment. For deliberation during the hearing, following issues have been framed which are as (i) whether the requested FCA is justified; (ii) whether KE has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources; and (iii) 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? All the interested/affected parties have been invited to submit written/oral comments or objections as permissible under the law at the hearing. Copyright Business Recorder, 2025
Express Tribune
14-05-2025
- Business
- Express Tribune
K-Electric seeks tariff cut by Rs5.02 per unit
Listen to article K-Electric (KE) has requested the National Electric Power Regulatory Authority (Nepra) to reduce power tariff by Rs5.02 per unit (kilowatt-hour – kWh) on account of fuel charges adjustment (FCA) for March 2025. According to documents, KE has submitted a petition and sought tariff reduction by Rs5.02 per unit for its consumers. "KE has requested a provisional negative FCA for March 2025, which has been calculated on the basis of interim reference tariff of March 2023," said the documents. If Nepra grants approval, the KE consumers will receive a relief of Rs6.79 billion. The regulatory authority has scheduled a public hearing for May 22 to deliberate on the private power utility's request for the negative FCA for March 2025. In its plea, KE also urged Nepra to consider an additional adjustment of Rs14.6 billion, pending since July 2023, related to the actualisation of fuel costs, including costs from partial load operations, the open-cycle mode, degradation and the start of its power plants. Nepra has already set aside Rs9.4 billion in FCA decisions for the months of November 2024 to January 2025. KE argued that adjusting the remaining amount now by utilising the negative fuel cost variations for February and March 2025 would prevent an additional financial burden on consumers in the future. According to the documents, Nepra has outlined key issues that will be examined during the upcoming hearing. These include whether the proposed negative FCA for March 2025 is justified, whether KE adhered to the merit order while dispatching electricity from its own power plants and through external power purchases and whether the company's request to adjust the accumulated actual fuel costs, based on technical factors such as partial load operations, open-cycle running, degradation curves and startup costs, is reasonable. The hearing will be conducted at the Nepra Tower and all interested and affected parties have been invited to submit written or oral comments. Relevant documents and determinations are available on the Nepra website.
