Islamabad:
K-Electric Consumers (KE) could expect RS4.84 relief per unit in their electricity bills, while the National Electric Power Regulatory Authority (NEPRA) examined a advocacy on Thursday for the reduction of prices due to fuel adjustment for the month of January 2025.
The KE had submitted a petition in front of the electricity regulator, requesting a reduction in the power rate to Rs4.84 per unit due to the fuel adjustment. If authorized, the overall advantage for consumers could reach around 4.695 billion rupees.
During the monthly hearing of the adjustment of fuel loads (FCA), the stakeholders pleaded for having succeeded in consumers. However, the KE has maintained its partial adjustment position, citing costs accumulated linked to partial load costs, free cycle operations, degradation curves and start -up costs.
KE said these costs may require adjustments during peak summer months. He stressed that this approach was to prevent an excessive financial burden for consumers, when electricity consumption and invoices were generally higher.
Addressing the queries on dependence on the national network, the head of the generation and the transmission of KE, Abbas Hussain, stressed that the generation peaks reached 2,400 MW during the month, stressing the need to maintain Ke’s generation capacity to meet demand beyond NTDC’s supply.
Ke produced only 4% from its own resources. Answering a regulator question about this production, KE authorities said the factories were managed to maintain a minimum load on the system. Regarding integration with the national network, KE confirmed that the four interconnections operated optimally.
However, the questions awaiting the Ke Kanupp Interchange (KKI) grid (KKI interconnection) remained due to continuous legal and administrative processes at the end of the NTDC. The NEPRA urged the NTDC to give clarity on its calendar to finish the line of transmission pending.
KE CEO, Moonis Alvi, has reiterated that additional interconnections would only be viable with a firm commitment to an increase in the NTDC supply. He said the NTDC would provide 1,200 MW on KE on a firm base, while an additional 1,000 MW will be provided, subject to availability.
Alvi also stressed that the NTDC’s commitment to additional food was crucial before new interconnections could be developed. It was informed that the government had provided a subsidy of more than 800 billion rupees to KE consumers.
Clarifying subsidies, the NEPRA has reaffirmed that KE has not received operational subsidies, instead, the federal government has provided subsidies to KE consumers to maintain pricing uniformity under the uniform national tariff policy.
A NEPRA official explained that the TDS was based on the difference between the determined and applicable price, guaranteeing affordability for consumers.
The KE also responded to concerns about the drop in consumption and demand, attributing it to the decline due to cold and the adoption of solar energy on the roof. The company has suggested that the planned discrepancy of electrical power plants in the network could help revive industrial demand.
In addition, the NEPRA has requested details from all Xwdiscos concerning the interests won over the amounts accumulated in losses to the prosumants of Netting net. On this occasion, the representative of the Rehan Javed industry underlined the need for predefined cost limits to ensure efficiency.
He stressed that costs should only be passed on to consumers after verification. The NEPRA has recognized these concerns, declaring that the authority must find a balance between consumer protection and the sustainability of the industry.
Tanveer Barry, Vice-President Kcci appreciated Ke’s efforts in Ramzan and ended their request at their request. Later, the authority reserved its decision which would be issued after examining the data and the submissions presented by the KE at the hearing.
