The federal government has officially requested that three quarterly tariff adjustments (QTAs) which were accrued throughout the previous fiscal year be sent to K-Electric customers that would result in an increase in the price of electricity of over Rs. 10 per unit.
NEPRA will convene a public hearing for the purpose of increasing the power rates for QTAs built in 2022–2023. According to the Ministry of Energy’s appeal to the regulators, costs of as much as Rs. 4.45 per unit during the first quarter, Rs. 0.4689 per unit for the following quarter, and Rs. 5.41 per unit for the rest of the year is included.
Customers of K-Electric will face an overall increase in the price of electricity of Rs. 10.32 per unit if approved in the near future.
The federal government asked NEPRA in a petition for the regulator’s policy guidelines under sections 7 and 31 of the NEPRA Act 1997 for the recovery of quarterly tariff adjustments, which are expected to take effect from September through December 2023.
In addition, the Energy Ministry has released policy guidelines which make it clear how frequently implemented quarterly changes are for K-Electric and state-run DISCOs users.
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The first QTA was issued on May 22, 2023, but NEPRA has been requested by the Ministry to review that decision. The Energy Ministry recommends a separate SoT for K-Electric due to the tariff rationalization sought on March 17, 2023, which involves the expected adoption of relevant uniform rates. The customer recovery period is expected to take place in September and October 2023, including the period from February to March 2023’s power bills.
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It is essential to keep in mind that Pakistan already asked for the timing of impending QTAs and Fuel Price Adjustments to be staggered over the next four to six months in response to the IMF’s issues about the government’s proposal for helping the poor get relief from excessive electricity bills.
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