KE produced electricity at extremely high rates in June, document reveals

• KE’s generation cost was higher in June, document shows.
• It produced electricity at an average cost of Rs24.90 per unit.
• Discos, KE may charge additional Rs1.81, Rs2.31 per unit in Aug bills.

ISLAMABAD: Karachiites are forced to pay higher rates for electricity than consumers in other parts of the country, according to a document shown during a public hearing held by the National Electric Power Regulatory Authority (Nepra) on Wednesday.

Nepra conducted a public hearing on the petitions filed by the distribution companies and K-Electric (KE) for a hike of Rs1.8846 per unit and Rs2.336 per unit, respectively. 

The petitions were in relation to the monthly Fuel Charge Adjustment (FCA) for June 2023.

According to the document shown during the hearing, the power generated by KE was about 114% more expensive than the electricity it obtained from external sources in June 2023. 

The utility generated electricity at a cost of up to Rs50.31 per unit in the previous month.

The documents further stated that the KE generated electricity at an average of Rs24.90 per unit in the last month while it purchased power from external sources at an average of Rs 11.65 per unit.

Furthermore, the documents revealed that KE produced electricity from diesel at Rs50.31 per unit, from Liquefied Natural Gas (LNG) at Rs43.37, and from furnace oil at Rs35.91.

The only vertical power utility company in the country didn’t produce a single unit of power from gas (local), the report added.

In June 2023, the documents revealed, KE generated 50.2% of its electricity from its own sources, whereas it bought 49.8% from other sources.

KE may charge additional Rs2.31 per unit in August bills

Meanwhile, the power regulator hinted on Wednesday that ex-Wapda distribution companies (Discos) may be allowed to collect an additional Rs1.81 per unit from their cus in the upcoming August bills.

Similarly, Nepra also suggested that KE could potentially collect an extra Rs2.31 per unit from their consumers in the same billing period.

On Wednesday, the authority conducted public hearings on the petitions filed by the distribution companies and K-Electric for a hike of Rs1.8846 per unit and Rs2.336 per unit, respectively. 

These petitions were in relation to the monthly Fuel Charge Adjustment (FCA) for June 2023.

NEPRA Chairman Tauseef H. Farooqi presided over the proceedings in the presence of other authority members, including Rafique Ahmad Shaikh (member technical) representing Sindh, Amina Ahmed (member law) from Punjab, Engr Maqsood Anwar Khan from Khyber-Pakhtunkhwa, and Mathar Niaz Rana (member tariff and finance) from Balochistan. 

If the regulator decides to approve these rates in their final decisions, it will result in an impact of nearly Rs29 billion (including GST) for the Discos and approximately Rs5 billion (including GST) for K-Electric consumers. 

The proposed increase will be applicable to all consumer categories except Electric Vehicle Charging Stations (EVCS) and Lifeline consumers. 

Notably, for May 2023, the FCA for Discos was an increase of Rs1.9039 per unit, while K-Electric saw an increase of Rs1.4465 per unit, and these charges are currently being collected in the July 2023 bills.