Fuel adjustment charges in KE bills legally decided: Nepra

The issue of Fuel Adjustment Charge (FAC) in K-Electric’s (KE) bills for the month of July 2022 has been decided by the National Electric Power Regulator (Nepra) after following the due process referred to in law, including the holding of public hearings.

This was stated by Nepra in his comments submitted to the Sindh High Court (SHC) on Friday on a petition filed by the Jamaat-e-Islami (JI) against what the party said was illegal load shedding, lack of production electricity and collection of various taxes by the KE from its consumers through its electricity bills.

The electricity regulator argued that the claimants had 30 days to challenge Nepra’s FAC decision, but they chose not to, due to which the decision could not be amended by this petition. Nepra said the KE filed a petition for the FAC. of August 2022 and requested a decrease of Rs 4.21 per unit which was approved after going through the codal formalities and due to such a decision KE consumers would get relief of Rs 7 billion. He asked the CSS to dismiss the petition as inadmissible.

A JI lawyer asked for time to go through the responses submitted by KE and Nepra to file a rebuttal, after which a CHS division bench headed by Judge Syed Hasan Azhar Rizvi granted time to the party and adjourned the hearing. hearing until October 18. The JI had previously filed a reply in the High Court, claiming that the purchase of electricity by external resources was much cheaper than the electricity produced by the KE, and that electricity consumers in Karachi had been overcharged by FAC.

The party argued that Nepra failed to take into account necessary elements such as fuel inventory position and fuel consumption of KE plant for the determination of FAC and made an illegal decision, under which KE consumers should be reimbursed.

Petitioner’s counsel asked CHS to have KE’s license revoked because it had raised the price of electricity and failed to invest in its power generation, transmission and distribution system. Karachi JI Chief Hafiz Naeemur Rehman and others had argued in the petition that KE was charging almost double electricity charges by including different taxes. The petitioners have asked the CHS to carry out a forensic audit of KE’s finances and to prevent it from carrying out unannounced load shedding in the city, particularly during night hours. They also sought an injunction against overcharging at the head of the CAF and the collection of taxes through electric bills at the heads of sales tax, general sales tax and TV license fee.

Imtiaz seeks solutions The Sindh government has demanded that the National Electric Power Regulatory Authority (Nepra) immediately address the issues of load shedding and overcharging by K-Electric (KE).

Sindh Energy Minister Imtiaz Ahmed Shaikh in a meeting with Nepra Chairman Touseef Hasan Farooqi at the Energy Department said on Friday that Karachi residents were unsettled by power cuts frequent and excessive electricity bills, and that the problem must be solved by the electricity regulator.

He added that power distribution companies should be required to immediately restore power supply and transmission system to flood-affected areas of the province. Shaikh informed the head of Nepra that there were also several complaints of forced dismissal of KE employees.

Eleanor C. William