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Tag: National Electric Power Regulatory Authority

  • KAPCO to contest NEPRA’s show cause notice

    KAPCO to contest NEPRA’s show cause notice

    KARACHI: Kot Addu Power Company (KAPCO) on Tuesday announced to contest a show cause notice issued by a regulatory authority.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said it will contest the show cause notice as per law by, inter alia, submitting a detailed reply within the stipulated period and will vehemently present its case before NEPRA and all relevant forums that there is no breach by the Company of any rules and regulations under the NEPRA Act.

    READ MORE: Pakistan approves LNG at $9 per MMBTU for export sector

    The National Electric Power Regulatory Authority (NEPRA) has issued a show cause notice (received on July 25, 2022) to the Company under section 27B of Regulatory of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act) read with relevant rules and regulations alleging prima facie violation of Regulation 6 (2) of NEPRA Interim Power Procurement (Procedures and Standards) Regulations, 2005 in respect of the extension of the Company’s Power Purchase Agreement (PPA) for a period of 485 days pursuant to the terms agreed between the Company and the Power Purchaser for settlement of the liquidated damages dispute between the Company and the Power Purchaser by invoking the terms of the PPA under Other Force Majeure Events (OFME).

    READ MORE: NEPRA to conduct public hearing on KE’s petition on July 28

    Through the show cause notice, NEPRA has sought reply of the Company, to be submitted not later than fifteen days of receipt of the show cause notice, as to why appropriate legal action may not be taken against the Company under relevant rules and regulations of the NEPRA Act, inter alia, including imposition of fine as prescribed.

    It is Company’s position that the extension of the PPA for 485 days is within the terms of the PPA and Company’s application for extension of generation license was filed with NEPRA within the period stipulated in the applicable regulations. Hence, there is no breach by the Company of any applicable regulations.

  • NEPRA to conduct public hearing on KE’s petition on July 28

    NEPRA to conduct public hearing on KE’s petition on July 28

    KARACHI: National Electric Power Regulatory Authority (NEPRA) has announced to conduct a public hearing on July 28 over the petition submitted by K-Electric on Fuel Charges Adjustments (FCA) for June 2022.

    The utility has sought an increase of Rs11.38/KWh in its FCA petition for June 2022. As per applicable tariff across the country, fuel adjustment is reviewed every month and is applicable on consumer bills for only one particular month.

    READ MORE: Revised power tariff, taxes on electricity bills in Pakistan

    The major impact on the monthly Fuel cost adjustment of June 2022 is due to an increase in the fuel price increase of Furnace Oil and power purchased from CPPA-G.

    The price of RLNG in June 2022 has increased by 50 per cent from March 2022. The price of RLNG as at June 2022 is Rs4,627 / MMBTU as compared to the price of Rs3,083 / MMBTU in March 2022.

    The price of electricity from CPPA-G in June 2022 has increased by 74 per cent from March 2022. The price of power purchased from CPPA-G as at June 2022 is Rs15.844/KWh as compared to the price of Rs9.098/ KWh in March 2022.

    READ MORE: K-Electric, Siemens sign deal for KKI Grid construction

    Fuel Charge Adjustment (FCA) is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers following NEPRA’s scrutiny and approval and are one-time charges. Consumers also receive a benefit when the cost of fuel decreases.

    After the public hearing and scrutiny, the regulator will make a decision on the request and issue instructions on the period during which these costs can be applied to consumer bills.

    READ MORE: Rupee devaluation severely affects KE’s profitability

    K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square Kilometre territory including Karachi and its adjoining areas.

    The majority shares (66.4 per cent) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36 per cent) in the company.

    READ MORE: KE’s profit up by 161% on high tariff adjustment

  • NEPRA examines power audit report to secure consumers interest

    NEPRA examines power audit report to secure consumers interest

    ISLAMABAD:  National Electric Power Regulatory Authority (NEPRA) has decided to examine the power sector audit report and said that it will take every step to secure consumers’ interest.

    In a statement issued on Saturday the regulator said that it is examining the recently released final Report by the Committee for power sector audit, circular debt resolution and future roadmap.

    “The report has never been shared with the NEPRA Authority before despite a clear agreement on the onset with the Convener of the Committee,” it said.

    NEPRA has constituted a team of experts to examine the report so as to prepare NEPRA’s detailed response and suggest suitable actions thereof. “NEPRA will take every action within its powers to ensure that consumer interest has not been compromised by carefully looking into any misrepresentation of facts and figures by any IPP as suggested in the report.”

    NEPRA determines tariff as per the Council of Common Interest (CCI) approved Government policy and after carrying out quasi-judicial proceedings in an open and transparent manner.

    Public hearings are held and participated by all the stakeholders including Government/ power sector representatives, industry experts, members of the civil society, media and legal experts.

    Every single word during public hearing is recorded and verbatim transcript is maintained for any future reference.

    NEPRA functions in the most professional manner, maintains the highest level of integrity and professional competence, duly acknowledged by local and international agencies.

    “Earlier in Feb 2019, on reports of earning excessive profit by certain RFO based plants, NEPRA proceeded with the Suo Moto and issued notices against five RFO based plants namely (Nishat Power Limited, Nishat Chunian Power Limited, Atlas Power Limited, Attock Gen Limited, Liberty Power Tech Limited), according to the statement.

    However, further proceedings were held up due to a restraining order issued by Honorable Islamabad High Court (IHC). Meanwhile, NEPRA is pursuing the case vigorously and it is likely to be decided shortly.

    It is further emphasized that consumers’ interest is prime for NEPRA and we assure to do everything within our powers to safeguard it.