ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday permitted K-Electric to raise about Rs19 billion extra finances in August by charging a remarkable extra fuel cost change (FCA) of Rs9.42 per unit to purchasers on power they consumed in May.
At a formal review managed by Nepra Chairman Tauseef H. Farooqui, the controller considered KE’s solicitation for an increment of Rs11.34 per unit for the expressed month to raise Rs22.65bn yet after minor preclusions worked out an increment of Rs9.42 per unit. Nepra found that KE had accepted for the time being that its fuel cost for import from the public network at Rs13.90 per unit while it was Rs13.83.
The controller deducted a FCA of Rs1.68 per unit on the dissimilarity in fuel costs and 24 paise per unit because of under-use of effective plants, accordingly cutting down the FCA to Rs9.42 rather than Rs11.34 per unit asserted by KE.
The Karachi-based private power utility had additionally requested that the controller permit it to charge these rates in July to facilitate its monetary issues. Mr Farooqui, be that as it may, declined the solicitation for charging such a weighty sum to customers in July when they were being charged Rs5.28 per unit FCA for power consumed a first month – April.
In its request, the KE said the power utility said it had charged a reference fuel cost pace of Rs16.88 per unit in May which ended up being Rs28.22 per unit, bringing about a hole of Rs11.34per unit due to around 143pc higher fuel cost of its own and 52pc by virtue of force buy cost including that of the public network.
The significant effect on the month to month fuel cost change in May is because of an expansion in the fuel cost increment of heater oil and power bought from the Central Power Purchasing Agency (CPPA). The cost of heater oil in May expanded by 38pc from March while the cost of RLNG between March to May expanded by 50pc.
The KE’s group drove by its CEO Moonis Alvi let the controller know that the main consideration for higher FCA was the fuel cost spike in the global market. Likewise, the KE was given lower amounts of RLNG in view of the default in LNG supplies.
Nepra individuals Rafique A Shaikh and Maqsood Anwar scrutinized the power utility for not using accessible less expensive fuel however the KE’s group battled it was not accessible. The individuals inquired as to why it didn’t pick wind power from Jhimpir and Thatta halls.
The KE’s group, notwithstanding, made sense of that the power utility could have a most extreme admission of 1,400MW from the public framework and since the power deficiency was a public peculiarity, KE was getting around 1,100MW from the public network.
A delegate of the Karachi Chamber of Commerce and Industry Tanveer Bari said the expansion in FCA was uncommon and would prompt the conclusion of the business. He blamed the KE for never really redesigning its framework. The Nepra boss concurred that KE expected to concoct out-of-the-case arrangements and consider renewables for less expensive energy.
The KE’s delegates said the utility would create around 800MW of sun oriented energy in four years and was likewise chipping away at 600MW nearby coal-based power plant. Mr Alvi said less expensive LNG was not in premonition and the organization would take advantage of all choices.
Under the duty component, changes in fuel cost are given to buyers just on month to month premise through a programmed system while quarterly tax changes because of variety in the power price tag, limit charges, variable activity and upkeep costs, utilization of framework charges and including the effect of transmission and circulation misfortunes are implicit the base tax by the national government.
