K-electric consumer face Rs 3.9342 per unit extra charge in March 2023
The impact on the city’s already-strapped electrical consumers will be tremendous, amounting to Rs5.814 billion in just one month. Except for K-Electric customers’ Lifeline program and Electric Vehicle Charging Stations (EVCS), this monthly increase will apply to all consumer groups.
On May 3, Nepra convened a public hearing to resolve a petition from the utility company in Karachi that asked for an Rs4.49 per unit increase on account of FCA for March 2023.
Other members of the authority were present, while Nepra Chairman Tauseef H Farooqi presided over the proceedings.
The company has also added 6.019 GWh in its proposal for the net metering units it purchased in March 2023. The FCA for the month of March 2023 included this energy, according to the authority.
Due to billing adjustments made by Sui Southern Gas Company (SSGC) about the gas quota of indigenous gas and RLNG that were delivered in February 2023, K-Electric (KE) has reported a large financial loss of Rs 242.43 million.
The National Electric Power Regulatory Authority (Nepra) has acknowledged this loss and taken it into account in the choice, though.
Nepra requested additional information and clarification from K-Electric (KE) to address any concerns and ensure compliance with regulations.
Concerns have been raised by commentator Tanveer Barry regarding the high Fuel Charges Adjustments (FCA) expected during the summer of 2023.
K-Electric responded by stating that an amount of Rs1.42 million has been provisionally withheld due to out-of-merit dispatch given to Lotte on March 15-16, 2023.
Imran Shahid, a commentator, has argued that K-Electric (KE) should stop operating inefficient power plants that have outlived their usefulness since they are increasing generation costs.
In response, KE said that over the previous 15 years, the efficiency of its whole generation fleet had increased from 30% to 48%.
KE further highlighted that unit-5 and unit-6 will only be run if they meet the economic merit order (EMO) to meet load requirements and that BQPS-I units 1 and 2 will be retired within the next three months.
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