Govt asks NEPRA to hike power price for KE to maintain uniform tariff policy

ISLAMABAD: The government has submitted a petition with the National Electric Power Regulatory Authority (NEPRA), seeking 51 paisa per unit hike for the electricity consumers of K-Electric to maintain uniform tariff policy across the country.

According to details, the federal government in order to maintain uniform tariff policy across the country has filed a motion with NEPRA and sought 51 paisa/unit raise for power consumer of K-Electric under quarterly adjustments (QA) for 3rd quarter (January – March) of Financial year (FY) 2021-2022.

According to NEPRA, the authority (NEPRA) in order to arrive at a just and informed decision has decided to hold a hearing on 8th November 2022.

It is relevant to note that NEPRA will take a decision regarding 3rd quarter adjustment for KE consumers and later the government will issue a notification in this regard on the basis of NEPRA decision.

As per federal government’s motion, the Authority is requested to issue separate SoT (Schedule of Electricity Tariff) with prospective application of applicable uniform rates after incorporating tariff rationalization. Such adjustment shall be applicable on the consumption of September 2022, October 2022 and November 2022 to be recovered from consumers in November 2022, December 2022 and January 2023. Respectively, said the government’s motion.

However, K-Electric, has said that this hike is requested by the GoP in order to maintain uniform tariff policy across the country. And, the recovery period is yet to be determined by NEPRA and notified by the Government.

NEPRA, in a public notice, has informed all stakeholders, interested/affected persons and the general public that federal government has filed a motion under section 7 & 31 of the NEPRA Act, 1997 read with 17 of NEPRA Tariff (Standards and Procedure) Rules, 1998 and proposed to increase the consumers end tariff by Rs 0.5087 per kilowatt hour for all consumers categories other than domestic lifeline. And, the government has requested that a hearing may be provided for the purpose of providing detailed submissions.

It is pertinent to mention that the authority had earlier determined periodic adjustment in tariff for the 3rd Quarter of FY 021-22 for DISCOs having uniform rate of Rs0.5087/kWh for three months period and same has been notified vide SRO No. 1587(1)72022 dated 23 August 2022.

In accordance with the National Electricity Policy, 2021, the Government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatization) through incorporation of direct / indirect subsidies.

Accordingly, KE applicable uniform variable charge is also required to be modified so as to recover the revenue requirements of KE, determined by the Authority consistent with the DlSCOs.  The same has been approved by the Federal Government and it was decided that the same be submitted to the Authority for consideration in terms of the provisions of the Act.

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