The Karachi Electric Supply Company has proposed the National Electric Power Regulatory Authority an increase in its tariff by 8.44 paisas per unit for June under the monthly fuel price adjustment.

Nepra would hold a public hearing to consider the proposed increase on August 31st 2012. The increase in tariff if approved would be adjusted in the bills of subsequent months.

Pursuant to the provisions of Section 31 (4) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 and as per the mechanism of the monthly fuel price adjustment, Nepra reviews and revises the approved tariff on account of any variation in fuel charges on a monthly basis.

As per the mechanism prescribed by the authority, KESC is allowed monthly adjustment in the fuel cost component for its own generation, as well as power purchase cost from external sources on account of the fuel price variation without taking into account the effect of transmission and distribution losses.

The KESC has submitted its request for monthly adjustment due to fuel price variation in June. The cost of fuel and power purchase claimed by KESC does not include any amount of late payment of surcharge, markup or interest.

Source - The News.com

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