K-Electric has once again approached the National Electric Power Regulatory Authority (NEPRA) with a request to increase electricity tariffs, this time by Rs 3.9 per unit. This proposed hike comes under the fuel price adjustment (FPA) mechanism for the month of July. NEPRA is set to review the application during a hearing scheduled for August 29.
If approved, this increase will further burden Karachi’s electricity consumers, who are already grappling with rising utility costs. According to K-Electric’s application, the proposed hike could result in an additional financial strain of approximately Rs 6.2 billion on consumers. This follows a recent approval by NEPRA for a Rs 5.76 per unit increase under the May and June adjustments.
The cumulative effect of these recent and proposed adjustments highlights the ongoing challenges faced by Karachi’s residents and businesses. With the approval of the May and June adjustments alone, a substantial burden has already been placed on the city’s electricity users.
The timing of this request has sparked concern among consumers and industry stakeholders alike. The economic pressures faced by the average Karachiite are considerable, with inflation and cost of living on the rise. An additional hike in electricity prices, especially in a city already notorious for its high energy costs and frequent power outages, is likely to be met with significant opposition.
During the previous adjustment, many critics, including industrialists, politicians, and consumer rights groups, voiced their concerns about NEPRA’s decision-making process. There were allegations that NEPRA was acting more as a “rubber stamp” for K-Electric’s requests rather than protecting consumer interests.
NEPRA’s role as the regulator will be under intense scrutiny during the upcoming hearing. The authority is expected to balance the financial viability of K-Electric, which cites rising fuel costs as the reason for the tariff adjustments, with the need to protect consumers from exorbitant price increases.
The hearing on August 29 will be a critical moment for Karachi’s electricity consumers, as they await NEPRA’s decision. Should NEPRA approve the request, it would further contribute to the already escalating cost of living in Karachi, a city where electricity tariffs are among the highest in the country.
