NEPRA Approves a New Subsidized Winter Package for KE’s Consumers

The National Electric Power Regulatory Authority (NEPRA) has accorded approval for Karachi electricity consumers to avail of the federal government-subsidized winter package.

A hearing was held at the NEPRA Headquarters, to ascertain the uniform tariff for K-Electric (KE) consumers, which was already announced and approved for the entire country in August 2021. According to the Authority, the rate will be Rs. 12.96 per unit for domestic, commercial, and general consumers of K-Electric in winter. NEPRA also approved the same package for industrial consumers of the utility company till 31 October 2023.

The discounted package will apply to the usage and consumption of more units than the corresponding period of the previous year.

NEPRA has forwarded the decision of the concessional package for K-Electric customers to the Federal Government. The concessional package will be applicable from 1 November 2021 to 28 February 2022.

The authority decision said that the KE would be allowed only the marginal cost on sales above the benchmarked units and no other adjustment as un-recovered cost (operation & maintenance, return on rate base, depreciation, bad debt) will be provided. If KE recovers any amount over and above the marginal cost on the incremental units either through tariff or through subsidy, the same amount would be adjusted from the utility subsequently.

On the other hand, the application for adjustments in the first quarter of the current financial year for the X-Water and Power Development Authority (X-WAPDA) Distribution Companies (DISCOs) was postponed without any decision.

Chairman NEPRA, Tauseef H. Farooqi, said that Central Power Purchasing Agency (CPPA) should come up with accurate figures. “It is a matter of Rs. 17 billion receivables, the figures should be clear”, Chairman NEPRA remarked. Power companies demanded NEPRA to allow Rs. 6 billion in the capacity purchase price.

However, hearing on the application for adjustments in the first quarter of the current financial year was adjourned without any decision.