NEPRA allows KESC to raise tariff by Rs 1.64/unit
19 July, 2012
ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) on Thursday allowed Karachi Electric Supply Company (KESC), a major debtor of energy sector, to enjoy the accumulated increase of Rs 1.64 in power tariff against fuel adjustment charges from April 2012.
ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) on Thursday allowed Karachi Electric Supply Company (KESC), a major debtor of energy sector, to enjoy the accumulated increase of Rs 1.64 in power tariff against fuel adjustment charges from April 2012.
KESC, who is responsible to generate and supply electric power to Karachiites, not yet clear its arrears to fuel supply companies as approximately Rs 55 billion, while a major chuck of power supply to Karachi customers average 700 megawatt (MW) is to be imported from federation.
KESC requested in its petition filed before NEPRA to increase power tariff for electricity consumers' upto Rs 1.14 per unit for April and Rs 0.52 per unit for May 2012 in the head of fuel adjustment as taking support of high power generation cost during certain months, however the bitter truth maintained totally an opposite picture of less generation in those month because of fuel constraint.
The hearing of the petition filed by KESC regarding increase in power tariff for karachites was held at NEPRTA secretariat in chair of acting Chairman NEPRA, Ghayas-ud-Din Ahmad.
The company in petition said during April 2012, approximately 1.30 billion units were sold and power generation cost was recorded upto Rs 1.44 billion, while 1.49 billion units were sold during May having accumulated power generation cost Rs 1.29 billion was documented.
Company maintained during these certain months the cost of power generation was increased because of higher price of fuel in international and local market, NEPRA allowed KESC to collect revenue and shift burden over electricity consumers as Rs 1.14 per unit for April and Rs 0.52 per unit for May in the head of monthly fuel adjustment.
Some Rs 55 billion dues are against the government of Sindh and Rs 55 billion arrears have accumulated against KESC and these arrears are being considered as a major hurdle in resolution of outstanding energy arrears at the level of federal adjuster to ameliorate liquidity situation of generation companies, the sources informed.
Immediate payment of Rs 32 billion to Pakistan State Oil could help this entity to ensure opening of letter of credit and availability of furnace oil for increased power generation.
The outstanding dues of electricity against federal, provincial governments, KESC, Azad Jammu and Kashmir and private sector have raised to Rs 383 billion with Rs 69 billion due from provinces.
The official said Punjab has paid Rs 5.5 billion and owes Rs 9.94 billion to Pakistan Electric Power Company followed by Rs 6.27 billion by Balochistan, Rs 8 billion Azad Kashmir and autonomous bodies, Rs 5 federal government and Khyber Pakhtunkhwa government owes Rs 1.79 billion to PEPCO.
NEPRA members also expressed their serious concerns over non-utilisation of power generation capacity of power thermal units in the company.
It was revealed in the hearing KESC has not been utilising higher efficient Independent Power Producer's (IPPs) plant named ‘Gul Ahmed' and ‘Tapal', which been using bungling power plant named ‘Bin Qasim' having higher power generation fuel consumption.
NEPRA asked KESC to submit its plants efficiency report after performing lab test regarding the current situation of plant proficiency before next hearing.
The recent power tariff hike for Karachi would not be implement upon those consumers, who have been consuming electricity power upto 50 units, while the collection of additional billing would be decided by authority with separate notification.
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