Power firms seek to extract Rs30bn more for May

With an unending rise in inflation, the electricity costs continued to go up as ex-Wapda Distribution Companies (Discos) and K-Electric have sought clearance to extract almost Rs30 billion more from their consumers amid heat waves in the country. In their separate tariff petitions, Discos are seeking to raise an additional Rs27bn from their consumers in July’s bill while KE has sought to extract about Rs2.8bn in fuel cost adjustments (FCAs) for electricity consumed in May. The National Electric Power Regulatory Authority (Nepra) has accepted the respective tariff petitions and called public hearings on July 5. If approved, Discos would charge an additional Rs2.054 per unit for electricity consumed in May despite over 56pc power generation from domestic cheaper fuels, slightly higher from 54pc in April. On the other hand, KE would be able to charge R1.495 per unit additional cost to consumers to mop up about Rs2.78bn under FCA in July. One of the key reasons behind the current FCA petitions is the relatively lower availability of hydropower generation (27pc of basket share) than estimated and the resultant increase in the share of imported LNG-based generation in the overall power supply — making it the second highest contributor at 24.33pc.