Karachi, November 10, 2023 – The National Electric Power Regulatory Authority (NEPRA) has announced a scheduled hearing on November 14, 2023, to deliberate on a uniform quarterly adjustment for the first quarter of 2023-24.
The request for this adjustment was filed by XWDISCOS, and it is in line with the Policy Guidelines issued by the Federal Government. The outcome of NEPRA’s determination is expected to impact K-Electric’s (KE) customers, aligning with the Uniform Tariff Policy.
NEPRA, in conjunction with the Government of Pakistan, establishes the policies and regulations governing the energy sector, determining the costs to be recovered from consumers in their monthly bills. The upcoming hearing will involve a thorough examination of the request by XWDISCOS, with NEPRA ultimately issuing a final decision on the amount to be passed on to customers according to established procedures.
The Quarterly Tariff Adjustment (QTA) filed by XWDISCOs encompasses various elements, including capacity charges, transmission charges, the impact of Transmission and Distribution (T&D) losses due to Fuel Cost Adjustment (FCA), and variable operation and maintenance charges. These components collectively contribute to the overall cost structure that is subject to periodic adjustments based on regulatory assessments.
K-Electric (KE), a publicly listed company incorporated in Pakistan in 1913 as KESC, plays a pivotal role as the sole vertically integrated utility in the country. With a jurisdiction spanning 6500 square kilometers, KE supplies electricity to Karachi and its surrounding areas. Privatized in 2005, the majority shares (66.4%) of KE are listed on the Pakistan Stock Exchange (PSX) and owned by KES Power, a consortium of investors that includes Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding) of Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan also holds a minority stake (24.36%) in the company.
It is essential to note that the regulatory process ensures transparency and fairness in determining adjustments, preventing individual Distribution Companies from influencing the proceedings or making unilateral changes. NEPRA’s oversight is crucial in maintaining the equilibrium between the interests of consumers and the financial viability of energy providers.
The upcoming hearing holds significance as it will provide insights into the adjustments deemed necessary for sustaining the operations and infrastructure of KE. The outcome will directly impact the consumers, and any adjustments made will be in adherence to the established policies, fostering a balance between the financial health of the utility provider and the affordability for end-users. As the energy landscape continues to evolve, regulatory oversight remains instrumental in fostering a sustainable and equitable energy sector for Pakistan.
