Power Division will approach Nepra about adjustment KE tariffs.

ISLAMABAD: Power Division is request a Quarterly Rate Adjustment (QTA) adjustment of Rs. 1.55 per unit in KE tariff from the National Electric Power Regulatory Authority (Nepra) to be paid back in three months.

At its meeting on July 20, 2022, the Economic Coordination Committee (ECC) of the Cabinet recommended raising KE's tariff by Rs1.55 per unit in order to bring it into accordance with the quarterly tariff adjustment's uniform tariff policy.

The periodic adjustment in tariff for the second quarter of FY 2021–22 for distribution businesses has been determined by Nepra in its determination of June 16, 2022, in accordance with section 31(7) of the Nepra Act. Nepra has suggested a uniform rate for the consumers of distribution businesses for a three-month period for the second quarterly adjustment of FY2021–22 in light of this finding.

According to the National Electricity Policy, 2021, the government may incorporate direct/indirect subsidies to preserve a uniform consumer-end tariff for K-Electric and state-owned distribution businesses (even after privatization). In order to preserve the uniform tariff across the nation, KE's relevant uniform variable fee must be changed. As a result, there will be a Rs. 1.5547/unit rise in the tariff, with a three-month recovery period.

Customers must pay back the approved modifications in August, September, and October 2022, respectively. Sources claim that ECC also suggested that any modification in the Discos' rate be automatically applied to KE. Power Division pointed out that the Federal Government would need to approve it, nevertheless. The ECC also wanted to know how the solar policy was progressing. The Minister for Power indicated that at the ECC's upcoming meeting, the Power Division would provide an update on solar policy.