Inside Financial Markets

KE consumers to get 9 paisa per unit refund

National Electric Power Regulatory Authority (Nepra) on Tuesday approved a refund of 09 paisa per unit for the consumers of Karachi overcharged by Karachi Electric (KE) in September 2016 after approval under provisional monthly fuel charges adjustment formula.

The decision was taken at a public hearing by the Authority presided over by Chairman Brigadier Tariq Saddozai (retired) on a tariff petition filed by the power sector entity which is being further sold to a Chinese company Shanghai Electric by the incumbent owner Abraaj Group..

According to the KE tariff petition, fuel cost variation of its own generation was Rs 153.474 million in September 2016 over June, 2016 whereas fuel cost variation of external generation sources was Rs 165.855 million which implies the total variation was Rs 12.381 million. The KE dispatched 1,477 million kWh in September 2016 which resulted total monthly variation decrease of Rs 0.84 per unit. Fuel price in June 2016 was Rs 46,777 per ton which has dropped to Rs 10 390 per ton in September 2016.

It is pertinent to mention here that the KE has submitted a petition for determination of its new Multi-Year Tariff (MYT) which is under process before the Authority. The Chairman Nepra expressed his displeasure on delayed submission of monthly tariff petition for the KE under monthly fuel adjustment. He directed the management to bring tariff petition for October 2016 within a couple of days, adding that implementation on tariff petitions of September and October will be clubbed.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)