K-Electric seeks nearly Rs19 per unit hike for seven months

• KE seeks provisional month-to-month FCAs from July 2023 to March 2024.
• KE additionally suggests Re0.29 lower for the 2 months interval.
• Nepra has set Could 9 as date for listening to the KE’s reqyest.

KARACHI: The Ok-Electrical is planning to shock customers as the only energy utility in Karachi has sought the Nationwide Electrical Energy Regulatory Authority’s (Nepra) permission to cost Rs18.86 per unit further gasoline value adjustment (FCA) from its customers for the previous seven months.

In response to particulars, the KE requested provisional month-to-month gasoline cost changes for the interval from July 2023 to March 2024.

In its software, the facility distribution firm sought Rs18.86 per unit enhance within the FCA for the previous seven months and instructed Re0.29 lower for the remainder of the 2 months interval.

If the facility regulator approves the KE’s plea, the overall enhance can be Rs18.57 per unit.

Nepra has set Could 9 as date for listening to the KE’s plea.

Final month, Nepra allowed energy distribution firms and the KE to gather an extra Rs2.7492 per unit from energy customers on account of periodic changes for 3 consecutive months ranging from April 2024.

The regulatory authority has authorised energy firms to gather over Rs85.3 billion from energy customers as an adjustment for the second quarter (Oct-Dec 2023). 

This Rs2.7 per unit adjustment will apply to Ok-Electrical as nicely. Notably, the said Rs85.275 billion doesn’t embody the gathering from the Karachi-based utility. 

If included, the overall quantity could escalate to over Rs90 billion. It’s important to spotlight that customers had been burdened with a number of taxes on these further costs, including to their monetary pressure.

Particularly, the 18% Items and Companies Tax (GST) on this quantity will additional impose an extra burden of over Rs16 billion on energy customers. In a nutshell, the customers pays over Rs106 billion (or $380 million) in these three months.

It’s to be famous on February 14, 2024, Nepra held a public listening to on the petition of those firms who had demanded Rs85 billion upward changes for the quarter beneath assessment.

This quantity is to be collected on account of variation in capability costs, variable operation and upkeep (O&M), further restoration on incremental gross sales, use of system costs (UoSC), Market Operator Payment (MoF) and FCA influence on transmission and distribution (T&D) losses for the quarter.