Home National Energy Ministry Seeks Rs10.32 Quarterly Tariff Increase for K-Electric Consumers

Energy Ministry Seeks Rs10.32 Quarterly Tariff Increase for K-Electric Consumers

by Haktaurus
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The Energy Ministry has officially submitted an application to the National Electric Power Regulatory Authority (Nepra), requesting an increase of Rs10.32 in three quarterly tariff adjustments (QTAs) for K-Electric consumers. This application, filed under sections 7 and 31 of the NEPRA Act, 1997, in conjunction with rule 17 of NEPRA Tariff (Standards and Procedure) Rules, 1998, aims to maintain uniform tariffs across the country.

In the request to the power regulator, the ministry proposes a quarterly adjustment of Rs.0.4689 per kilowatt-hour (kWh) for XWDISCOs during the second quarter of FY 2022-23, which will affect KE consumers. If approved, this adjustment will result in KE consumers being charged Rs10.32 per unit, to be recovered in three separate quarterly adjustments throughout 2022-2023.

The ministry’s application details the following breakdown of tariff adjustments:

  • Re0.47 per unit increase for the October to December 2022 quarter.
  • Rs4.45 per unit increase for the July to September 2022 quarter.
  • Rs5.40 per unit increase for the April to June 2023 quarter.

These charges, as per the ministry’s request, will be implemented in September and October 2023.

The ministry’s request also includes a call for the issuance of separate Schedules of Tariffs (SoT) for KE with prospective application of uniform rates, following tariff rationalization requested in the March 17, 2023 submission (Rs.1.4874 to Rs.4.4547/kWh for different consumer categories). This adjustment would be applicable to the consumption of February and March 2023 and would be recovered from consumers in September and October 2023.

The Energy Ministry has also submitted policy guidelines to Nepra for the uniform application of quarterly adjustments on XWDISCOs and KE consumers. In light of these guidelines, the ministry aims to persuade Nepra to reconsider its May 22, 2023 decision and issue separate SoT for KE with the prospective application of applicable uniform rates.

A hearing has been scheduled by Nepra for September 11 at 2 pm in response to the ministry’s request. This development follows a previous hearing on August 23, where the Energy Ministry had advocated for the application of the same quarterly adjustment on KE consumers as well, in line with the policy guidelines mentioned earlier.

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