Consumers of K-electric (KE) could expect a relief of RS4.84 per year. Unit in their electricity bills when the National Electric Power Regulatory Authority (NEPRA) on Thursday considered a plea for customs reduction due to fuel adjustment for January 2025.

KE had submitted a petition before the power regulator and sought reduction in the power tariff up to RS4.84 per year. Unit due to fuel adjustment. If allowed, the total benefit of consumers could reach approx. RS4,695 billion.

In consultation with the monthly hearing of fuel tax (FCA), stakeholders advocated for passing on consumers’ full benefit to consumers. However, KE maintained its position as partial adaptation with reference to accumulated costs associated with partial load fees, open cycle operations, degradation curves and start -up costs.

KE said these costs may require adjustments in the highest summer months. It emphasized that this approach aimed to prevent excessive financial burden for consumers when electricity consumption and bills were typically higher.

KE’s Chief Generation & Transmission Officer, Abbas Hussain, approached inquiries about the dependence on National Grid, emphasized that Generation Peaks reached 2,400 MW during the month, emphasizing the need to preserve KE’s own generation’s capacity to meet demand beyond NTDC’s offer.

KE produced only 4% from its own resources. In response to a question from the regulator regarding this production, the KE authorities said plants were run to maintain minimum load on the system. About integration with National Grid, KE confirmed that all four interconnections worked optimally.

However, pending questions about the KE KANUPP exchange (KKI) -net (KKI -joint coupling) remained due to ongoing legal and administrative processes at the end of the NTDC. NEPRA called on NTDC to give clarity on its timeline to finish the pending transmission line.

KE’s CEO, Moonis Alvi, reiterated that further interconnections would only be viable with a firm commitment to increased supply from NTDC. He said NTDC would supply 1,200 MW to KE on a fixed basis, while an additional 1,000 MW will be delivered to accessibility.

ALVI also emphasized that NTDC’s obligation to additional power supply was crucial before further interconnections are developed. It was informed that the government had granted a subsidy of over RS800 billion to KE consumers.

Instead of clarifying the subsidies, NEPRA confirmed that KE did not receive operational subsidies, instead, the federal government provided grants to KE consumers to maintain customs uniformity according to national uniform customs policy.

A NEPRA official explained that TDS was based on the difference between the determined and applicable customs, which ensured the affordable prices of consumers.

KE also related to worries regarding lower consumption and demand attributed to the decrease due to cold weather and increased roof terrace adoption of roof terrace. The company suggested that the planned change of captivity power to the network could help revive industrial demand.

Separately, Nepra has sought details from all XWDISCOS on the interest earned on amounts accumulated in debt for consumers network. In the apartment, industry representative Rehan Javed emphasized the need for predefined cost limits to ensure efficiency.

He emphasized that costs should only be transferred to consumers after verification. Nepra recognized these concerns and said the authority must create a balance between consumer protection and the industry’s sustainability.

Tanveer Barry, Vice President KCCI appreciated KE’s efforts at Ramzan and completed the strain on their request. Later, the authority reserved its decision which would be issued after reviewing data and submissions presented by KE during the consultation.