Islamabad :
The National Electric Power Regulatory Authority (NEPRA) has increased the price of additional fuel by 97 paise per unit, which will be collected from Electric consumers next month. Stopped the final decision for a few days.
This additional fuel cost adjustment (FCA) is due to the high cost of electricity used in the month of August. In August, expensive fuel was used to generate expensive electricity and efficient plants were not fully utilized.
In its application for an increase of 98 paisa per unit in electricity rates under the monthly fuel cost adjustment, the company said that the price of electricity has gone up due to gas shortage and as a result imported furnaces contrary to the power plants merit order. They are being run on oil.
NEPRA case officials said K-Electric’s request showed that 14 per cent of the electricity was generated through RFOs, which led to an increase in production costs.
He said that K-Electric had violated the merit order administered by the Ministry of Energy for power generation and imposed a burden of Rs. 943 million on consumers, Rs. 618 million on low pressure gas and expensive sources. The power generation generated an additional cost of Rs. 325 million.
The regulator directed K-Electric to resolve the issue of supply of natural gas with Sui Southern Gas Company (SSGC), if it is not resolved within the stipulated time, on future K-Electric in FCA. A fine will be imposed.
K-Electric officials said that the National Transmission and Dispatch Company (NTDC) is not supplying more than 1100 MW to Karachi, about 14% of which is generated through furnace oil.
The NEPRA chairman said the company was generating expensive electricity from its power plants and wondered why it did not get relatively cheap electricity from the national grid.
He directed the power company to provide a written reply to the issue within three days and if not satisfied, the regulator would reduce the equivalent cost.
Chairman NEPRA said that KEE is taking most of its power from the national grid and asked why you do not shut down your expensive power plants. K-Electric is getting free power supply from the national grid as there is no power supply agreement between the federal government and the company, the federal government and KE should resolve the issues related to the power supply agreement.
