Demand to save electricity consumers from ‘corporate fleecing’

September 27, 2015 Off By Web Desk

Karachi: Pasban e Pakistan has demanded from NEPRA to save the electricity consumers of Karachi from what it called ‘corporate terrorism’ of K-Electric (KE) and adjust electricity tariff for them as per actual production and distribution cost of the electricity in the mega city, rejecting the misleading figures and intriguing concealments of the KE and thus saving the power consumer from brutal exploitation.

According to details, during a NEPRA public hearing on Monday, Director Public Issues, Pasban e Pakistan, Abubakar Usman filed comments and objections against FCA for July 2015 sought by K-Electric (KE). His petition was related to Fuel Price Variation of July,2015 Over June,15 ( Mill Rs 978. 979) (Ps/kWh 59. 701); Power Purchase Price Variation of July,15 Over June,15 (Mill Rs 323.003) (Ps/kWh 19.698); and Total Fuel Costs Adjustment of July,2015 Over June,15 (Mill Rs 1,301. 982) (Ps/kWh 79.399)

He maintained that though the Installed Capacity of Generation is 2,341 MW, but the KE is producing only 1010 MW and the rest of need is based on purchase from NTDC /IPPs Basket. He regretted that the KE is harming the national economy though unwarranted load shedding under pretext of maintenance / tripping / underground fault/ tripping in national grid. He requested that NEPRA may compel KE to produce enough electricity itself to cater the needs of Karachi electricity consumers, says a Pasban release here Monday .

The Pasban leader maintained that KE produced 825.146 Mill kWh on gas at previous price of Rs. 488.23 mmbtu with similar Bus Bar Heat Rate and thus the cost of power is Rs. 4. 6463 kWh (82% of Sent Out Units produced on Gas). He said as 18% power is produced on furnace oil and costs Rs. 11. 258 kWh; therefore, the average cost comes at Rs.5.8414 kWh (Gas + Furnace).

He requested that in June 2015 total average cost of fuel (Gas+ Furnace) incurred by the KE was Rs6,941.561million. If this amount is divided by 999.712 Mill kWh the per kWh cost comes at Rs6.9435/ kWh. He said if the cost of fuel incurred (gas+ furnace of Rs5883.295million is divided by 1007.204 Mill kWh, the average cost per kWh comes at Rs.5.8414 kWh. Therefore the decrease in generation cost as per KE’s own sources comes at Rs1.102/ kWh which should be passed to the consumers of Karachi in FCA- July 2015.

He said yet another discrepancy is found at Page-4 in Item # 8 of KE Petition, adding in Actual Mathematical System: 632.596 kWh is Power Purchases from IPPs & NTDC at cost of Rs3,666.291million for JULY 2105 Per kWh and the cost comes at Rs. 5.796 kWh. From this the Cost of Power Purchases from IPPs/NTDC 651.904 Mill kWh at Cost of Rs 4111.054 in June 2015, which comes Rs. 6.306/ kWh should be deducted and the difference of Ps. 0.511 kWh should also be passed in FCA of July 2015.

He said that surprisingly KE admits decrease in Purchase Cost from IPPs/ NTDC by (Ps. 0.511) per kWh (Rs. 323.003 Million). This is decrease in Fuel Cost especially in account of Purchases from IPPs/NTDC. Therefore, this amount of Rs.323.003 Million shall be shared in SENT OUT 632.596 kWh Purchased from IPPs/NTDC., comes at (Ps 0.511) kWh. He regretted that deceivingly KE Shared Rs. 323.003 Million to GRAND SENT OUT 1,639. 800 Mill kWh (Own produced + IPPs/NTDC). He regretted that wrong method was adopted by the KE to conceal benefits of Consumer. He requested to impose fines for this to KE under the Act.

Pasban leader further said that in JULY,15 KE disclosed Purchase Price of Furnace at Rs. 42,644 M/Ton, whereas BYCO Market Selling listed Price is at Rs. 36,525/= M/Ton. As Such discrepancy of exaggerated price is observed by Rs 6,116/= M/Ton, In July 2015 KE consumed 52,751 M/Ton and excess Rs. 322. 625 million were charged in calculation of tariff to show High Cost of Power generation. Only 4235 M/Ton of Opening Furnace Stock Utilized in July 2015, so adjustment to this extent by Rs. 25.90 Million deemed to be valid.

He requested the NEPRA-Authority may graciously grant decrease in Fuel cost of KE Own Generation in July-15 over June,15 Rs. 1.102 kWh; decrease found in Purchase Cost from IPPs/NTDC in July,15 Over Jun Rs. 0.511 kWh; decrease Evident in Purchases of FURNACE OIL in July,15 Over June Rs. 1.543 kWh, and the decrease observed in O&M payment to IPPs in July,15 Over June Rs. 0.0368kW. Hence the aggregate total of relief in FCA- Determination for July,15 Comes Rs. 3.1928kWh which should be granted.

He maintained that the KE’s proposed FCA -July,15 by MINUS (79.399) Ps/kWh is incorrect, requesting that FCA-Determination Minus (Rs. 3.1928 kWh), shall be awarded to the electricity consumers of Karachi for July 2015 in the interest of justice.

Major (retd) Haroon Rashid Vice Chairman NEPRA, Syed Masoodul Hassan Naqvi member NEPRA Authority, registrar NEPRA Syed Safeer Ahmed, Director Tariff Sajad Qureshi were also present in the public hearing held at Institute of Public Administration (NIPA) Karachi.