Inside Financial Markets

K-Electric allowed to raise tariff by 48 paisa for October

National Electric Power Regulatory Authority (Nepra) has allowed Karachi Electric (K-E) to increase power tariff by 48 paisa per unit for October 2016 under the monthly fuel price adjustment mechanism. The decision was taken at a public hearing presided over by Chairman Nepra Brigadier Tariq Saddozai (retired). An increase in tariff will not be applicable on consumers who use 50 units a month.

According to KE, its fuel cost increased by Rs 196.78 million due to which the cost of electricity increased by 13 paisa per unit. Fuel cost of other power plants was Rs 526.84 million which resulted in an increase in tariff by 34.8 paisa per unit. The financial impact of increase in fuel of KE”s own generation and external sources has been calculated at 47.86 paisa per unit. KE would recover Rs 723.2 million from consumers in October.

K-E management informed the regulator that the units sent out on gas and furnace oil at BQPS-1 have been worked out in the ratio of actual units generated on gas and furnace oil at BQPS-1. K-E also claims that its dispatches as per economic merit order are from its own generating units (with the available fuel resources) and imports are from external sources. The management also ensured the regulator that the cost of fuel and power purchase claims do not include any amount of late payment surcharge/ mark up/ interest.

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)