Nepra conducts public hearing to discuss KE petition

Staff Reporter BOL News

30th Sep, 2021. 10:50 am
NEPRA Approves Reduction In Price Of Electricity By 19 Paise Per Unit

Nepra

KARACHI: The National Electric Power Regulatory Authority (Nepra) conducted a public hearing to discuss K-Electric’s petition on fuel charges adjustments for the month of August 2021.

In the petition, the KE has requested for fuel charges adjustment for the month of August 2021 with an average impact on the consumers of 98 paisas/unit.

The K-Electric explained that the reason of fuel cost variations was due to an increase in the prices of re-gasified liquefied natural gas (RLNG) and furnace oil, compared with the reference month by 35 per cent and 16 per cent, respectively.

Upon an observation from Nepra team about K-Electric not following the Economic Merit Order, Aamir Ghaziani, chief financial officer of K-Electric, clarified that the Economic Merit Order was followed, while giving dispatch to its power plants, as well as power purchases from external sources to ensure that Karachi’s demand is met.

However, insufficient gas pressure from the Sui Southern Gas Company (SSGC) was impacting the company’s ability to fully utilise its plants.

The K-Electric has been making full and timely payments for all RLNG and natural gas consumed from SSGC, and has been engaged with SSGC officials to finalise the gas supply agreement on a firm commitment on the quantity and pressure of gas supply to secure Karachi’s energy future, as well.

In this regard, a detailed response on instances highlighted by Nepra together with the relevant supports have been shared with the Nepra team, and the KE will discuss these and provide any further information required by the Nepra team.

These hearings are part of a regular process; whereby, the regulatory authority scrutinises the adjustment requests based on the facts and figures. The state-owned distribution companies are usually heard in one sitting, while K-Electric’s hearings are conducted separately. The regulator will issue its decision after verification.

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