Daily Times

KARACHI: The National Electric Power Regulatory Authority (Nepra) has accepted K-Electric’s motion for leave for review as true as the regulator approved an increase of 5.37 paisa per unit on account of Fuel Charges Adjustment (FCA) for May 2016.

Earlier, Nepra had refused to accept the K-Electric’s petition for an increase of 14 paisa per unit and asked the power utility to pass on 3.19 paisa per unit to the consumers as FCA for the month of May, 2016 and it was to be charged in the prospective billing month of August.

However, K-Electric filed a Motion for Leave for Review on August 08, 2016, against the decision of the Nepra in the matter of FCA for the month of May, 2016 issued by the Nepra on August 05, 2016.

In the review motion, K-Electric requested the Authority to allow it to charge FCA for the month of May, 2016 in the prospective billing month of September, 2016 which, as per the impugned decision, was to he charged in the month of August, 2016.

Furthermore, K-Electric contested the deduction of fuel variations in respect of energy produced from Units 3 and 4 of Bin Qasim Power Station-I (BQPS-I) in the impugned decision.

The revised fuel cost variation of K-Electric’s own power generation and power purchases from external sources works out to be Rs 89.882 million or Ps. 5.374/ kWh The worked out amount of FCA 5.37 paisa will be charged by K-Electric in the prospective billing month of October, 2016 and it shall be applicable to all the consumer categories except lifeline consumers of K-Electric.

During the hearing in matter of K-Electric’s FCA request of Ps 14.304/ kWh, Nepra had observed that K-Electric had generated 135.49 CWh of energy from BQPS-I Units which had been excluded from the generation license of K-Electric through Licensee Proposed Modification-V (LPM-V) dated March 13, 2015 and K-Energy Limited has been issued generation license dated March 13, 2015 in respect of two units of BQPS-I. In view thereof, the Authority had decided not to allow the variations of around Rs 143 million on the electrical power generated from BQPS-I Units.

However, K-Electric, disagreeing with the Nepra’s decision, stated in a motion for leave for review submitted that it is generating energy from both of BQPS-I Units as it still considers them a part of its generation license. These units will be excluded from its generation license on COD of these units after coal conversion project as evident from the excerpts of the LPM-V of its generation license and generation license of K-Energy dated April 13, 2015.

Nepra considered the submissions made by K-Electric in its review motion has noted that the BQPS-I Units continued to operate and coal conversion plan has not been executed which was the reason for exclusion of these units from K- Electric and grant of license to K- Energy.