The National Electric Electricity Regulatory Authority (NEPRA) announced on Monday a Rs12.68 per unit increase in the power rate for K-Electric customers due to a quarterly adjustment.
However, the decision will most likely not affect the consumers in Karachi due to uniform tariff policy applicable on all electricity distribution companies including KE. The burden of the additional financial hit will fall on federal government in the form of tariff differential subsidies paid out of the budget in the coming months.
It is worth noting that K-Electric has applied to the National Electric Electricity Regulatory Authority for a Rs14.53 per unit increase in the power pricing.
Earlier in October, the NEPRA granted a Rs4.89 per unit cut in electricity pricing for K-Electric customers due to a fuel cost adjustment (FCA) for August 2022.
According to the announcement, the fuel cost adjustment for K-Electric customers will be reduced by Rs4.89 per unit, as opposed to the Rs4.21 requested by KE. It did, however, indicate that the tariff decrease for July would only be in effect for one month.
According to the NEPRA, the FCA decrease would apply to all consumer groups except lifeline customers, residential consumers consuming up to 300 units, farm consumers, and EVCS (Electric Vehicle Charging Station).
On September 29, the electricity sector regulator held a public hearing. The concerns highlighted during the hearing were whether the desired fuel price change was reasonable and if KE followed the merit order while dispatching its power units.
During the hearing, the authority stated that the cost of KE’s own generation was around three times that of the cost of energy purchased.
When questioned, KE stated that it has established a thorough strategy for the introduction of less expensive energy sources, including renewables. KE stated that it intends to install 1,182 MWs of renewable energy by 2030.
نیپرا کی جانب سے کے الیکٹرک کے اپریل تا جون 2022 سہ ماہی ایڈجسٹمنٹ کے حوالے سے فیصلہ جاری۔
فیصلے میں 12 روپے 68 پیسے فی یونٹ اضافے کی منظوری دی گئی۔
ترجمان کے الیکٹرک
(۱/۲)@KElectricPk— Imran Rana, Spokesperson, K-Electric (@imranrana21) October 24, 2022
