Rs4.98 per unit tariff cut likely for Karachi power consumer

KARACHI: K-Electric, the power supplier for a port city, has sought a reduction of up to Rs4.98 per unit in electricity tariffs from the National Electric Power Regulatory Authority (Nepra).

K-Electric has filed a petition with Nepra for a reduction in electricity tariffs on account of monthly fuel charges adjustment (FCA) for November 2024.

The power supply company requested relief of Rs7.17 billion to consumers in the billing month of February 2025. The reduction is sought due to a fall in the prices of energy used in power plants.

The power regulatory authority has scheduled a public hearing on January 15, 2025, to review the KE petition pertaining to fuel charges adjustment.

During the hearing, the regulator will examine whether the requested FCA is justified and whether KE has followed the economic merit order while giving dispatch to its power plants as well as making power purchases from existing sources.

If approved by the regulator, the adjustment will apply to all consumer categories except lifeline consumers, domestic consumers using up to 300 units, electric vehicle charging stations, prepaid electricity consumers of all categories, and agriculture consumers.

However, the negative adjustment for the monthly fuel charges adjustment (FCA) will also apply to domestic consumers with Time of Use (ToU) meters, regardless of their consumption level.