Pasban seeks justice for 22mn power consumers of Karachi

December 16, 2015 Off By Web Desk

Karachi: Pasban e Pakistan has urged the National Electric Power Regulatory Authority (NEPRA) to do justice with 22 million electricity consumers of Karachi.

Abubakar Usman, Director Public Issues Committee of Pasban in his written comments and objections submitted against FSA for October 2015 before Nepra’s chairman and associate members of Nepra Authority in Islamabad submitted that fuel price variation of K-Electric’s own generation, as mentioned in the KE FSA petition for October 2015, is Rs23.288. The fuel cost variation of external generation sources is Rs828.636million. The total variation is Rs851.024million. The total units sent out are 1579.255 million Kwt and the total monthly variation increase/ (decrease) (Ps/Kwh) is 53.945.

He submitted that it is relevant to note that K-Electric is DISCO of Karachi City, and its consumers belong to Karachi, Hub & Gharo. FSA shall belong to consumer who has right to discuss & raise material objection on discrepancies available on computing accountancy in determination of FSA cost.

He said 22 million consumers cannot come to Islamabad to attend the public hearing, so sufficient opportunity shall be awarded to these consumers by holding public hearing at Karachi. He requested that the present hearing may be adjourned and public hearing should be held in Karachi regarding the Quarterly FSA.

In analysis, comments and objections, he submitted that for October 2015 XW DISCO’s awarded (Rs1.81) decrease per Kwh to consumers. Whereas K-Electric demands ‘increase’ of Ps 53.945 Per Kwh, which he termed just surprising. He said the Cost of Power Generation is deemed to be similar to all power producers in the country. Operating Cost may differ a little, but the request for increase is out of scope of wisdom.

He said as FSA hearing for Oct-15 is being held in Islamabad, many consumers are not able to attend the meeting to furnish their objection &comments on rostrum of NEPRA Hall; hence the K-Electric is trying to take best opportunity & benefit for its request for increase in FSA due to no opposition as the end of consumers.

He said there is no logic of increase in FSA/ Oct-15. Gas supply & consumption to all Gas Units are almost same. Bin Qasim Combined Cycle Power plant and Korangi Combined Cycle Power Plant received increased supply of gas. The impact on the cost of power producing does not seem increasing. Same shall be over September 2015. He said the details are available for Audit Scrutiny on Gas Chart submitted by K-E with it petition.

He submitted that KE admits reduction in F/O Price Over September-15 by Rs278/ M/Ton by showing Purchase Price of 29,807/ Over Sept-15 by Rs30,085/ P/M/ton.

He said whereas in fact the market listed price of F/O is Rs28,697. He said KE has added exaggerated price by Rs1,110 Per M/Ton on 63,028 M/Ton by Rs. 69.96 Million. This discrepancy should be reversed in computing Fuel variation cost price.

He said the Sent out units on Gas are more in comparison of September 2015 and there will be no impact of increase on gas produced power.

He said in Oct-15 the sent out units are more on F/O by 40.797 Mill/ Kwh Over Sept-15. It is pertinent to note that F/O Price is decreased by Rs. 1,110 Per /M-Ton in OCT-15, so Cost on F/O generation shall be reduced by Ps 18 Per Kwh over Sept-15. He asked how the KE can request ‘increase’ in Oct-15.He said furnace oil is available at market price to bulk purchaser KE as noble consumer.

He mentioned that in Oct-15 purchases from KANUPP, Tapal & Gul Ahmed show reduction in cost variation, so that no logic for seeking increase in FSA for Oct-15.

He further submitted that NTDC/CPPA fuel cost components may be rechecked/ audited/ scrutinized for calculating FSA at applicable /approved PRICE to all XWDISCO’s & K-Electric. In Sept-15 K-E found discrepant by Ps 32.8 Per/Kwh. Nepra Authority should go for adjusting with a justification in favor of consumer.

Pasban leader further argued that the O & M payment is also reduced in Oct-15 over Sept-15 considerably as shown in petition in terms of Per/ Kwh.

He concluded that on concrete ground of the pointed out discrepancy, the FSA for OCT-15 comes in ‘decrease’ and not in ‘increase’. He reminded that all other XWDISCO’s in rest of the country have requested ‘decrease’ in FSA -Oct-15 by Rs. 1.81 P/Kwh.

He said that the KE is trying to get benefit of the absence of consumers, who could not reach Islamabad to attend the public hearing, hence this is a one-sided hearing. He requested that in this backdrop justice should be doled out to 22 million Consumers by a ‘strict audit of petition and its accountancy’. He appealed that the over costing of furnace oil price shall also be revised and penalty charged on the discrepancy.

He prayed that the NEPRA Authority may graciously be pleased to revise FSA of Oct-15 in ‘decrease’ by relevant amount which comes out in re-audit. He said this prayer is made in the interest of justice for 22 million electricity consumers of Karachi Electric.