Nepra okays Rs1.7/unit hike in K-Electric bills

ISLAMABAD: K-Electric’s power consumers are bracing for a joint increase of Rs1.7178 per unit in their electricity bills over the next three months.

The National Electric Power Regulatory Authority (NEPRA) approved the federal government’s motion on Friday and directed K-Electric to recoup this additional amount from customers in the billing cycles of January-February and March 2024. The adjustment is attributed to two positive Quarterly Tariff Adjustments (QTAs) for the fiscal year 2022-23.

NEPRA issued its decision on Friday under which Rs0.4689/kWh for the second QTA of FY2022-23 will apply to the consumption in April, May, and June 2023. Likewise, the rate of Rs1.2489/kWh for the third QTA of FY2022-23 will apply to the consumption in July, August, and September 2023. Both recoveries will be made from K-Electric consumers over three months from January to March 2024.

The Ministry of Energy (Power Division) on December 6, 2023, applied to Nepra, seeking approval for the transfer of these two quarterly tariff adjustments (QTAs) for the fiscal year 2022-23 on K-Electric consumers.

The Division also mentioned that NEPRA had finalized the quarterly tariff adjustments for XWDISCOs for the second quarter FY2022-23 at Rs0.4689/kWh, and the recovery period spans three months, from April to June 2023. Additionally, the authority has also determined the third quarterly adjustment for XWDISCOs for the same fiscal at Rs1.2489/kWh. The recovery period for this adjustment was three months, covering July to September 2023. These determinations have been duly notified and successfully recovered from the consumers of XWDISCOs.

It said that following the National Electricity Policy, 2021 the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatization) through the incorporation of direct/indirect subsidies.

Accordingly, KE’s applicable uniform variable charge is also required to be modified to recover the revenue requirements of KE determined by the Authority, consistent with the uniform national tariff of XWDISCOs.

It was approved by the federal government and it was decided to submit that to the authority for consideration in terms of the provisions of the Act.

The ministry further said that the Cabinet’s Economic Coordination Committee (ECC) approved, on August 7, 2023, the implementation of a uniform QTA to address delays in maintaining consistency for future K-Electric consumers. Guidelines were issued to NEPRA for this purpose. The cabinet officially ratified the ECC’s decision on August 9, 2023.

The ECC, following the established guidelines, sanctioned the application of the third quarter tariff adjustment (QTA) for the fiscal year 2022-23 at Rs1.2489/kWh for K-Electric consumers on August 9, 2023.