Islamabad (July 05, 2018): National Electric Power Regulatory Authority (Nepra) on Thursday has notified revised multi-year tariff (MYT) for K-Electric (KE) at a base rate of Rs12.81 /KwH, slightly up from the previously approved tariff of Rs 12. 771/KWh.
The period for the MYT shall be of seven years applicable from July 01, 2016 till June 30, 2023. KE had originally sought MYT at Rs16.1/KwH for a period of ten years.
Responding to the decision, internal sources said the tariff notified for a seven-year period starting July 1, 2016 might have an impact on future investment plans as well as company’s proposed takeover by Shanghai Electric of China.
It is pertinent to mention here that the reduction in MYT announced by NEPRA would not impact consumer-end tariff as it only impacted the KE’s profitability.
In its order, NEPRA directs KE to obtain approval of the NEPRA for future power acquisition along with the rates and other terms and conditions for the purchase of power from external sources. KE shall not be allowed any adjustment in tariff on account of power purchase cost variation in respect of those power sources for which prior approval of the NEPRA has not been obtained.
KE has also been directed to stop charging bill collection fee separately from the consumers in future; pay interest on security deposits to the consumers through their bills in future and stop charging meter rent from those consumers who pay their cost of meter.
Moreover, KE is allowed a total investment of Rs 298,915 million for the seven years tariff control period for its Generation, Transmission and Distribution Systems. The power regulator said KE shall not carry out any adjustment in the consumer end tariff unless allowed, approved or directed by the authority.
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