ISLAMABAD  -  K-Electric has requested National Electric Power Regulatory Authority (NEPRA) to transfer the burden of Rs 13.88 billion to Karachi-based consumers under fuel prices adjustment for 29 months.

In a petition moved to NEPRA, K-Electric has demanded for monthly fuel adjustment for 29 months from December 2016 to April 2019 under fuel price adjustment.

In a petition for monthly and quarterly variations for the period of June 2016 to April 2019 under multiyear Tariff 2017-2023, K-Electric has requested an increase in tariff for 16 months and decrease in tariff for 13 months for the KE consumers. Since the provisional adjustment has been granted to K-Electric by NEPRA till the month of November 2016, therefore for the remaining 29 months (December 2016 to June 2019) the company has requested fuel price adjustment.

According the petition filed with NEPRA, K-Electric has requested decrease in tariff for 16 months while increase in tariff for 13 months under fuel price adjustment. For 16 months KE has requested an increase of Rs 20.31 billion in power tariff. Similarly for the remaining 13 months KE has requested decrease in power tariff which will provide relief relief of 6.43 billion to the power consumers.

In addition to the fuel price adjustment, K-Electric has filed request for adjustment in tariff on account of variation in Power Purchase Price (PPP) which includes impact of transmission and distribution losses on fuel charges variation as per mechanism of quarterly adjustment provided in Multi Year Tariff and annual adjustment of O&M, bad debt, base rate adjustment component, other income, depreciation and return components’-Electric requested for the following quarters.

K-Electric is producing power from its own generating units and import from external sources. In its petition K-Electric has claimed that the cost of the fuel and power purchase claim doesn’t include any amount of late payment surcharge, mark up and interest.

The total increase in tariff is Rs 8.65 per unit which will have a financial impact of Rs 13.88 billion over the power consumers in K-Electric area. However the final decision in this regard would be made by NEPRA after public hearing on the petition which is scheduled for today (Wednesday).

After the hearing NEPRA will decide the actual net amount to be transferred to the KE consumers, its transfer mode and time frame. An official source told The Nation that NEPRA will decide about the time frame for the transfer of burden to the power consumers. The time frame to charge the consumers can be spread on six months, one year or even more longer period, the source added.

In public hearing, NEPRA will discuss whether the requested fuel price variations and quarterly variations requested by K-Electric are justified. NEPRA will also ascertain whether the petitioner has complied with the directions of the Authority in terms of Interest on Security deposits, bill collection charges, meter Rent etc.