ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday cleared Rs1.29 per unit additional fuel cost adjustment (FCA) for consumers of K-Electric on account of electricity consumed in February with a revenue effect of Rs1.2 billion.

The public hearing on KE’s request for a Rs3.45 per unit increase in its monthly FCA was presided over by Nepra Chairman Tauseef H. Farooqui. The Karachi-based power utility had demanded that additional FCA would help recover about Rs3.04bn additional expenses on fuel it had incurred in February on top of reference tariff. The Nepra case officers reported that on the basis of KE’s petition the FCA impact worked out to be Rs3.95 per unit and not Rs3.45 per unit as claimed by the utility. After various disallowances on account of heat rate and other calculations, the Nepra team worked out the FCA at Rs1.29 per unit for February.

On a question from the Nepra chairman about the power cuts, the KE’s representatives reported that except for a recent problem for about half an hour there was no load shedding in the city. This was challenged by some consumers who demanded that Nepra should conduct a survey about the loadshedding in the city through Nepra’s regional office in Karachi. The consumers also protested as to why load shedding was taking place in low loss high recovery areas.

The Nepra team, however, suggested that affected consumers should file their complaints to its regional office. The Nepra chairman suggested the company required to upgrade its technology to ensure that paying consumers do not suffer on account of non-payment by other consumers on the same feeder. However, he conceded it would take time.

A representative of the Karachi Chamber of Commerce and Industry (KCCI) said the industry rejected the new FCA while it was already paying FCA for January.

Published in Dawn, April 5th, 2022