The National Electric Power Regulatory Authority (NEPRA) has concluded hearings on key fuel adjustment petitions filed by K-Electric and the Central Power Purchasing Agency (CPPA), with decisions now reserved pending final review.
K-Electric requested a reduction of Rs4.79 per unit in electricity prices under the monthly fuel cost adjustment (FCA) for April. The company argued that the relief is justified and should be passed on to consumers, especially amid high inflation and mounting energy costs.
However, the Power Division once again sought a 15-day postponement of the hearing, reportedly to consult with the Law Ministry regarding the implications of a uniform tariff policy. This request was strongly opposed by NEPRA Member Legal Amna Ahmed and the legal team, who argued that no such provision exists in the NEPRA Act to withhold fuel adjustments from consumers.
The NEPRA chairman stated that the issue of the uniform tariff would be discussed in future FCAs after receiving cabinet approval, adding, “If the Power Division wanted to consult the Law Ministry, it was their job, not ours.”
K-Electric CEO Moonis Alvi reiterated the company’s stance in favour of providing relief to consumers, but acknowledged that if NEPRA approved the Rs7 billion relief, K-Electric’s revenue would decline.
CPPA requests 10-paisa increase for May
Separately, NEPRA also completed the hearing on CPPA’s request for a 10-paisa per unit increase in electricity tariffs for all government-owned distribution companies (DISCOs) under the FCA for May.
According to CPPA, the reference fuel cost for May was Rs7.49 per unit, the same as in April. If approved, the increase would place an additional burden of Rs1.25 billion on consumers.
During the hearing, CPPA officials also issued a warning about future pressures on the power tariff, citing rising gas prices and the Rs323 billion annual interest burden on circular debt repayments. If electricity sales don’t increase, a surcharge to cover interest payments may be introduced, CPPA warned.
NEPRA will issue formal decisions on both matters after thoroughly examining submitted data and justifications.
