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Good News: NEPRA approves reduction in K-Electric’s tariff by Rs5.12 per unit

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2 years ago

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  • The change will be reflected in November bills.
  • This will also apply for only one month.
  • Rs5.12 decrease will have an impact of over Rs8.6 billion.

ISLAMABAD: In a major relief for Karachiites, the National Electric Power Regulatory Authority (NEPRA) Friday notified a reduction in K-Electric’s tariff on account of fuel charges adjustment (FCA) for September.

The power regulator notified that a Rs5.1261 per kWh adjustment should be reflected in November bills under the FCA — a system by which the price of electricity is adjusted as fuel prices fluctuate. This will also apply for only one month.

The hearing of KE’s fuel adjustment application in NEPRA was held on October 25 where the KE had requested a negative FCA of Rs4.622 per kWh.

However, following the arguments and estimates the power regulator approved a negative FCA of Rs5.1261 per kWh.

In a statement, the NEPRA directed all KE to show the adjustment separately in the consumer’s bills for November.

This shall apply to all consumer categories except:

  • Lifelines consumers
  • Domestic consumers who consume up-to 300 units
  • Agriculture consumers
  • Electric vehicle charging stations

It was also clarified that the negative adjustment on account of monthly FCA applies to domestic consumers having Time of Use (ToU) metres irrespective of their consumption level.

The Rs5.12 decrease will have an impact of over Rs8.6 billion on consumers, including GST.

“While effecting the fuel adjustment charges, the concerned K-Electric shall keep in view and strictly comply with the orders of the courts notwithstanding this order,” the notification issued in this regard read.

Earlier this week, the power regulator had indicated an increase in the electricity tariff of the ex-Wapda distribution companies XWDISCOs by Rs0.08 per unit on account of FCA for September 2022.

The Rs0.08 increase will put a burden of over Rs1 billion on consumers, including GST.

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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