DISCOS, KE SEEK POWER TARIFF HIKE FOR APRIL UNDER FCA AND QUARTERLY ADJUSTMENTS

POWER Distribution Companies (DISCOS) have requested a Rs 2.01 per unit increase in electricity tariff for April 2023, while Kelectric has sought a Rs 5.659 per unit hike in power tariff for the same period and quarterly adjustments for January to March 2023.

National Electric Power Regulatory (NEPRA) will conduct separate hearings on May 31, 2023, to review the proposed tariff adjustments for DISCOS and K-electric.

The Central Power Purchasing Agency (CPPA), acting on behalf of DISCOS, has applied to NEPRA for the approval of a Rs 2.0100 per kilowatt hour (kwh) increase in power tariff. According to CPPA’S application, a total of 10,010.30 giga watt hour (GWH) of energy was generated in April at a cost of Rs 10.2384/kwh. Out of this, 9,734.91 GWH was delivered to DISCOS at a cost of Rs 10.3975/kwh.

The CPPA report provides detailed information on the energy production from various sources during April, including hydel, coal, RFO, gas, RLNG, nuclear, import from Iran, mixed sources, wind, bagasse, and solar.

K-electric, on the other hand, has requested a positive fuel charge adjustment (FCA) of Rs 0.489/kwh for the month of April, along with a separate request for a quarterly adjustment amounting to Rs 5.170/kwh for the period of January till March. These adjustments, if approved, will be applied to customers’ monthly bills.

The FCAS are necessary due to global variations in fuel prices used for electricity generation and changes in the generation mix. As per the power sector’s policies, these costs are passed on to customers for a single month, subject to NEPRA’S scrutiny and approval. It is worth noting that consumers also benefit when fuel costs decrease.

NEPRA has issued public hearing notices, inviting all interested and affected parties to raise any written or oral objections they may have during the hearings.

Power consumers across the country should prepare for the potential additional burden, as NEPRA is likely to grant approval for the proposed adjustments in power prices for both DISCOS and K-electric under the FCA for April 2023 and the quarterly adjustments.