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ISLAMABAD: The federal government and the Karachi-based consumer segments on Tuesday opposed allowing about Rs60 billion in claims to K-Electric under End-of-Term (EoT) adjustments for the multi-year tariff (MYT) period 2017-23.
At the conclusion of the public hearing on Tuesday, the National Electric Power Regulatory Authority (Nepra) said KE’s petition regarding EoT adjustments was within the approved MYT framework for the control period 2017-23.
Without giving a final judgment, Nepra said “the mechanisms for these adjustments were incorporated and approved by Nepra in MYT determination for FY17-FY23 and mid-term review determination, which envisaged specific components to be reviewed at the end of the control period through a prescribed regulatory mechanism”.
During the hearing, KE demanded the cumulative EoT adjustment claim of Rs43.6bn that included components relating to the impact of exchange rate variations on the allowed return on equity (RoE), investment-related adjustments, and working capital actualisation based on actual balances versus projected benchmarks approved under the MYT framework.
