1Q of FY 2021-22: KE allowed to recover QTA to the tune of Re0.57/unit from consumers

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The government has allowed K-Electric (KE) to recover Quarterly Tariff Adjustment (QTA) of first quarter of FY 2021-22 to the tune of Re 0.57 per unit from KE consumers, in the first three months of next fiscal year, well informed sources told Business Recorder.

Under section 31(7) of the Nepra Act, Nepra, in its determinations for Discos of May 9, 2022, has determined periodic adjournment in tariff for the first quarter of FY 2021- 22 for Discos, notified by Nepra on May 31, 2022.

In light of this determination, Nepra has recommended uniform rate for the first Quarterly Adjustment of FY 2021-22 for the consumers of Discos for a three-month period.

Further, in accordance with the National Electricity Policy, 2021, the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatisation) through incorporation of direct/indirect subsidies.

Accordingly, KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country which will result in a tariff increase of Re 0.5715 per unit with recovery period of three months.

Keeping in view the current scenario, Power Division submitted the following proposal for consideration and approval of ECC of the Cabinet: (i) tariff rationalisation by way of adjustments may be approved for K-Electric; (ii) Nepra may be approached to issue revised Schedule of Tariff (SoT) determined for the Quarter October to December 2021, or incorporate in the latest schedule of tariff being determined by Nepra for the quarter Jan-Mar 2022, after incorporating tariff rationalization and upon approval of Nepra, notify the same in the official gazette by way of modification in SROs. Such adjustments shall be applicable on the consumption of June 2022, July 2022 and August 2022, to be recovered from consumers in July, August and September 2022, respectively.

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