ISLAMABAD - The consumers of K-Electric will pay an additional Rs20 billion on account of the quarterly adjustments in next three months as the company’s average applicable tariff will reach Rs33.54 per unit in April. NEPRA on Monday conducted public hearing on the federal government’s request to allow the transfer of two previous quarters adjustment to the consumers of KE, which will increase the price of electricity for Karachiites by up to Rs. 6 per unit. Federal government is seeking tariff increase in terms of two different quarterly adjustments. Additional collections from the people of Karachi will be made during April to June 2023. The hearing was informed that the KE’s applicable tariff was lower than other XWDiscos since July 2022 to March 2023, however it will go up by 18pc in April 2023. In April the applicable tariff of KE will be Rs 33.54 per unit which is Rs 5.24 per unit higher than XWDiscos tariff of Rs 28.30 per unit for the month. The hearing, presided over by Chairman NEPRA Tauseef H Farooqui, was told by the official of the Authority that the federal government had asked for an increase for electricity consumers in terms of quarterly adjustments to maintain a uniform tariff. The official also said that additional collections of up to Rs. 4.45 per unit from the electricity consumers of Karachi will be made from April to May 2023, while additional collections of Rs. 1.55 per unit will be made during April to June 2023.
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Due to increase in electricity rates, the consumers of KE will bear a burden of additional Rs 20 billion within three months (April to June 2023). The federal government had submitted an instant motion to NEPRA requesting the application of up to Rs. 4.45 per unit for the 1st quarter of FY 2022-23 (July to September) and Rs. 1.55 per unit for the 2nd quarter of FY 2021-22 (October to December) to consumers of K-Electric, which were previously determined by the regulator for XWDiscos. The average hike for K-Electric consumers in the 1st quarter of FY 2022-23 is Rs. 3.21 per unit, while it is Rs. 1.55 per unit for the 2nd quarter of FY 2021-22. NEPRA had previously allowed a hike of up to Rs. 4.45 per unit in power tariff, allowing ex-WAPDA Discos (XWDiscos) to transfer an additional burden of Rs. 42 billion to electricity consumers on account of quarterly adjustment for the first quarter of the ongoing fiscal year. The Nepra had also directed that the additional burden will be transferred during the months of February and March and will have an average impact of Rs 3.30 per unit on the consumers.
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The decision will result in increasing the per unit cost of various categories of KE’s consumers from Rs1.4874/unit to Rs 4.45 per unit. In accordance with the National Electricity Policy, 2021, the government may maintain a uniform consumer-end tariff for K-Electric and stateowned 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 uniform national tariff of XWDISCOs. Keeping in view this, instant motion was filed by the federal government with respect to Consumer End Tariff Recommendations of KE to maintain to maintain uniform tariff across the country and recover the revenue requirements of KE determined by the Authority keeping in view the proposed targeted subsidy and cross subsidies. NEPRA has reserved the judgment and will announce its decision later.
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