Nepra allows KE to charge Rs1.55/unit extra in May-July bills

The National Electric Power Regulatory Authority (Nepra) has permitted K-Electric to impose an additional charge of up to Rs1.5547/unit for July to September 2022, as part of quarterly tariff adjustments (QTA). This charge will be reflected in the bills of all power consumers from May to July 2023.

Consumers in all categories, including residential, commercial, time of use (ToU) consumers, electric vehicle charging stations (EVCS), general services, industrial sector, single point supply, agriculture tube wells, streetlights, and residential colonies attached to industrial premises, will be billed with an additional Rs1.5547/units for these three months. However, lifeline consumers consuming less than 100 units per month will be exempted from this burden.

The amount will be recovered from consumers based on the electricity units consumed during July, August, and September 2022 in their utility bills for May-July 2023.

Nepra took the decision after receiving a federal government motion regarding the recommendation of a consumer-end tariff for K-Electric. As per practice, the government maintains a uniform tariff across the country, and the difference is usually accommodated through a subsidy.

The Ministry of Energy requested that the quarterly adjustments be applied to K-Electric consumers, similar to those applicable to XWDISCOs. The federal government made the aforementioned motion to the Nepra, under sections 7 & 31 of the Nepra Act, 1997 read with rule 17 of Nepra Tariff (Standards and Procedure) Rules, 1998.

On April 3, 2023, the power regulator held a public hearing regarding the federal government’s motion and the consumer-end tariff recommendations of the K-Electric to adjust the tariff of K-Electric under the head of the Uniform Tariff Policy. It was revealed that the federal government is providing a subsidy of approximately Rs150 billion to K-Electric during the current year.