KE tariff increased by Rs 4.8/unit for the month of March - Business Recorder

KE tariff increased by Rs 4.8/unit for the month of March – Business Recorder

Islamabad: The National Electric Power Regulatory Authority (Nebra) has allowed K-Electric (KE) to increase tariffs by Rs 4.80 per unit to recover an additional Rs 7.862 billion from consumers for March 2022 under the FCA mechanism.

KE, in its FCA Amendment Application, sought a positive adjustment of Rs 5,275 per unit with an impact of Rs 8,592 crore.

The FCA amendment to be redeemed in June 2022 bills shall apply to all categories of consumers except for Lifeline consumers.

The authority indicated during the hearing held on April 27, 2022 that a power purchase agreement was signed between NTDCL and K-Electric on January 26, 2010 for a period of five years to sell/purchase 650 MW based on basket prices.

Subsequently, a decision was taken by the Council of Common Interests (CCI) at its meeting on 8 November 2012 regarding modalities for drawing electrical power from NTDCL by the petitioner, whereby it was decided to reduce the power supply by 300 MW from NTDCL to K-Electric.

However, CCI’s decision has been challenged by means of suits/petitions by K-Electric in the Supreme Court of Sindh. No new agreement has been signed between K-Electric and NTDCL yet, and K-Electric continues to draw power from the national grid, which is currently around 1,100 MW.

Tanvir Barry, representative of the Kuwait Chamber of Commerce and Industry, said the high FCA rates are having a detrimental effect on industrial consumers in KE.

Aneel Mumtaz inquired about the basis of the change in the rate of energy purchased from CPPA-G. It was clarified that KE initially requested the cost of power purchased from CPPA-G on the basis of the fuel cost component in February 2022, as the price for March 2022 was not available. Subsequently, K-Electric reviewed its application pursuant to the FCA’s request for CPPA-G in the Distribution Companies Matter for March 2022.

Arif Balwani mentioned during the session that many KE-owned factories are operating with outdated temporary temps, which need updating. He further added that KE should buy more electricity from CPPA-G as it is cheaper to generate. K-Electric acknowledged, in its modification requests, that it sends on Economic Merit Order (EMO) from its own generation units (with available fuel resources) and import from external sources. It has also been certified that the cost of fuel and power purchase claims does not include any amount of surcharges/increments/interest on late payment.

K-Electric has provided a factory-wise generation statistics sheet signed by K-Electric employees. Plant-specific statistical sheets provide information in terms of plant capacity, actual units generated, actual overhead consumption, net generation and bus bar dispatch, actual heat rates, fuel consumption and fuel cost and generation cost per unit.

In addition, K-Electric also provided copies of bills raised by fuel suppliers and copies of bills raised by energy service providers. K-Electric, although it filed an application for leave to review against the commission’s decision of 02 September 2020, has not been decided upon by the commission. Therefore, for the purpose of tuning, K-Electric used a heat rating of 8377 BTU/kWh, as permitted by the decision of 02 September 2020.

The authority noted that K-Electric requested an amount of Rs 213.32 million to run the KCCPP on HSD during March 2022. The authority has provisionally considered for the purpose of adjustment the same amount, i.e., Rs 213.32 million, based on the request of K-Electric, based on a heat rate of 7,950,183 btu /kWh (100% as reported by KE), with the same CV for HSD and aid as reported by KE. Any modification, once the Authority approves the heat rate/auxiliaries for KCCPP on HSD, and at CV expense, will be subsequently adjusted along with the previously permitted cost.

Copyright Business Recorder, 2022

#tariff #increased #48unit #month #March #Business #Recorder

Leave a Comment

Your email address will not be published.