by Mushtaq Ghumman
ISLAMABAD:National Electric Power Regulatory Authority (Nepra) Thursday approved a refund of 85 paisa per unit to the consumers of K-Electric for August 2015 under the fuel adjustment mechanism. The authority took the decision at an unpleasant public hearing held under the chairmanship of Chairman Nepra, Brigadier Tariq Saddozai (retired).
According to the K-Electric management, the utility’s fuel cost has been calculated at Rs 1.3155 billion for August 2015. K-E’s total generation stood at 1.541963 billion units in August. The company calculated fuel variation of Rs 706 million in its own power generation, whereas external fuel variation cost was Rs 609.4 million and K-E’s generation cost declined by 85 paisa per unit in August.
Chairman Nepra observed that K-E’s management run its own power plants to get to only 71 percent electricity whereas it acquired 96 percent electricity from the national grid. He maintained that the country is facing the brunt of cheap electricity being supplied by K-E to its consumers, adding that other consumers are also Pakistanis not ‘Indians’ whose interests are being compromised by K-Electric. Chairman Nepra further stated that K-E is acquiring electricity from National Transmission and Despatch Company (NTDC) illegally.
Member Nepra, Sindh said that K-E has unleashed loadshedding in Karachi to earn maximum profit. K-E officials argued that Nepra is not authorised to issue instructions to the power utility. At this Chairman Nepra got visibly angered and said sarcastically that “it appears you (K-E officials) are not feeling well.”
Addressing the K-E officials, Chairman Nepra stated that Nepra has issued notice to K-E for illegally purchasing electricity from NTDC for which legal action can be taken against the utility. Member Punjab, Khawaja Naeem stated that Discos’ consumers are purchasing electricity at Rs 11 per unit due to K-E’s own low generation. Nepra has sought a detailed report from K-E for low generation from its own power plants.
Nepra and K-E management are at loggerheads for the last several months after the power utility obtained a stay order from the Sindh High Court (SHC) fearing the regulator will impose penalty on it for the Ramazan incident when several people lost their lives. Nepra is expected to request SHC to allow it to proceed further against the power utility, which is now in a comfortable position with the Ministry of Water and Power, after back channel contacts were made at the highest level.
Source: Business Recorder