Inside Financial Markets

Overcharged in September- KE to refund Re0.84 per unit to consumers

Karachi Electric (KE) is to refund Re 0.84 per unit to consumers overcharged in September 2016 after approval from the National Electric Power Regulatory Authority (Nepra) under provisional monthly fuel charges adjustment formula. Nepra is scheduled to hold a public hearing on November 22, 2016 in Islamabad 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.

The Water and Power Ministry is not in the loop about the terms and conditions agreed between M/s Abraaj Group and M/s Shanghai Electric. A team of KE was seen in the Ministry of Water and Power on November 8, 2016 knocking different doors of the officials on the issue of subsidy.

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. KE dispatched 1,477 million kWh in September 2016 which resulted in 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 in September 2016.

KE has submitted a petition for determination of its new Multi-Year Tariff (MYT) which is under process before the Authority. Pursuant to the mechanism prescribed in its previous MYT determination, K-E has requested to allow FCA for September 2016 on provisional basis. The revision is based on Discos’ rate for September 2016 notified on November 1, 2106.

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)