Daily Times

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has raised power tariff by Rs 0.39 per unit for K-Electric consumers on account of fuel cost adjustment for June 2016.

NEPRA made the decision at a public hearing in response to a petition filed by the K-Electric management, which sought approval for raising tariff by Rs 0.45 per unit because of variation in the fuel cost.

The hearing was held on Thursday with Brig (r) Tariq Mahmood Khan Sadozai in the chair.

In its petition, the K-Electric pointed out that it faced a fuel cost variation of Rs 740.132 million in electricity production from external and internal resources.

The cost of generation increased from internal resources, whereas K-Electric got cheaper electricity from external resources – the National Transmission and Despatch Company (NTDC), it said.

It said that a cost variation of Rs 794.005 million was on account of power generation from internal resources, and in the case of external resources, the fuel cost variation due to reduction in fuel price was calculated at Rs 53.873 million. This resulted in an increase of 45 paisa per unit of electricity for the month of June 2016, the power company pleaded.

During the month, the K-Electric supplied 1,634.89 million units of electricity to the consumers.

The regulator, however, aired concern over power generation with the help of expensive fuel by the K-Electric management.

The NEPRA chairman said that the K-Electric had claimed an additional amount of 6 paisa per unit on account of fuel adjustment. He said the company had given figures, but the regulator would verify the same. He said that the licences of K-Electric’s plants had been cancelled, which need to be looked into. He said that the company’s production units ‘3’ and ‘4’ were operating without licences, and this issue would have to be resolved.