ISLAMABAD – The residents of Karachi are suffering due to fight between Sui Southern Gas Company and K-Electric, said chairman Nepra in his remarks over the delay in the signing of gas supply agreement between both the companies.
Nepra Chairman, Tauseef H Farooqi, while presiding over hearing on the quarterly adjustment of KE has also shown his displeasure over the night time loadshedding in Karachi. In its petition filed by the KE regarding monthly FCA adjustment for period of January 2021 to April 2021 and quarterly adjustment for the quarter ending in March 2021 under Multi Year Tariff (MYT) 2017-2023.In its petitions K-Electric had requested Nepra to allow transfer of the burden of Rs 7.174 billion to power consumers under monthly fuel charges adjustments and Re 0.36 per unit increase under the 3rd quarter adjustments.
Nepra has postponed hearing on monthly fuel charges adjustments for the months of Jan to April 2021 and now will conduct it along with the FCA for May and June 2021. However, quarterly adjustment of KE has been heard and authority after completion of all formalities will decide in due course. During hearing the KE consumers complained regarding night load shedding. Chairman Nepra asked KE representative, “We have asked you not to carry night time load shedding in Karachi, then why you are doing it?” The KE’s official said that the company had to resort to night time load shedding in some areas due to NTDC. However he said that they are not doing nighttime load shedding for the last 15 days.
Chairman asked KE’s official if they have signed gas supply agreement with SSGC. The KE’s representative said that it has not been signed yet. The issues of outstanding dues between SSGC and KE has not been resolved so far, the chairman remarked, and added that the residents of Karachi are suffering due to scuffle between KE and SSGC.
Chairman further asked that when you are getting enough gas then why you had used furnace oil? The KE’s official responded that the minimum requirement is 190mmcfd and when the demand increases from 190mmacfd then they use furnace oil.
In its petition for quarterly adjustments for the quarter January to March 2021 in tariff on account of variation in Power Purchase Price (PPP other than fuel), impact of TO losses on fuel charges variation, as per the mechanism provided in the Multi Year Tariff (MYT) determination K Electric had requested to increase the tariff by Re 0.366 per unit.
Under monthly FCA for January, February and March KE has requested to transfer the burden of Rs 7.174 billion while for the month of April the KE has requested Nepra to allow it to return Rs 1.606 billion or Re 0.869 per unit to the power consumers of Karachi under monthly FCA.
For the month of January, KE has requested for the increase of tariff by Rs 1.978 per unit which will allow the company to collect Rs 2.053 billion from the power consumers of Karachi. For February it has requested for the increase of tariff by Rs 2.495 per unit which will allow the company to collect another Rs 2.773 billion. Similarly for March the company has requested to increase the tariff by Rs 1.497 per unit which will allow the KE to transfer the burden of Rs 2.348 billion to the Karachiites.