Islamabad:
The country’s energy regulator is working to establish a single system operator with a unified basket for the entire country. At this time, K-Electric: The private company of Karachi 1 and state distribution companies (disc) have separate systems to calculate electricity costs.
The National Regulatory Authority of Electric Power (NEPRA) may take one or two years to establish the system, the Energy Division to the Economic Coordination Committee (ECC) of the Cabinet during a recently held meeting.
Power’s division reported that Nepra is working to establish a single system operator with a unified basket for the entire country, and the integration of the Electric in this framework is expected to materialize within 1-2 years.
He said that to guarantee uniform tariffs online with the National Electricity Policy and address the anomalies between the K-Electric and other consumers, a proposal was presented for approval. The Finance Division supported the proposal with the recommendation to review it after a year.
For the determination of the adjustment of the fuel loads by the discos, the proposal for uniformed fuel adjustment could be considered. Nepra, in his comments, declared that the fuel charges the adjustment of K-Electric and discs continued to determine independently based on their respective fleet costs and generation combination, to guarantee regulatory transparency and compliance with the principles of cost reflectivity.
The Ministry proposed that the uniformity at the end of the consumer can be achieved by alignment of the policy of the coded energy purchase prices (PCA), with separate cost of fuel cost adjustments for K-Electric and discotheses.
Any uniform application had been driven by politics and backed through subsidies/subsidies crossed according to the National Electricity Policy.
In addition, the impact of the implementation of the unique dispatch model must also be examined while the summary is approved. Nepra’s comments are aligned with the proposal.
Power’s division clarified that K-Electric is entitled to 1,000 MW of the National Network, with any additional drawing allowed on a relationship basis. He said that K-electric taking has recently increased to around 1,600 MW, constituting more than 65% of its generation basket.
The power division requested the approval of the ECC for the proposal contained in the summary. The ECC approved the proposal with the stipulation that it will be reviewed after a year.
During a recent public hearing held by Nepra on fuel adjustment, the interveners had expressed concerns about the uniformed fuel adjustment for the K-Electric.
They were of the opinion that the uniform fuel adjustment would deprive consumers of relief they had been receiving due to fuel adjustment every month.
