NEPRA revises K-Electric tariff announces relief to residents

KARACHI: The National Electric Power Regulatory Authority (NEPRA) has approved a revised tariff schedule for K-Electric, which provides financial relief to residential customers who use different levels of electricity consumption.

The number of electricity users who receive protection from the utility company has increased during the past several years. The new rates provide lower variable charges to customers who use more electricity.

The 301-400 unit customers will experience a price decrease from Rs. 37.99/kWh to Rs. 36.46/kWh, while 401-500 unit customers will pay Rs. 38.95/kWh, which represents a decrease from Rs. 40.20/kWh.

The variable rates for slabs 501-600 units and 601-700 units experienced decreases. The 700-unit consumers will pay a marginally lower fee of Rs. 47.20/kWh.

Each slab now requires customers to pay slightly higher fixed charges. The existing system protects households that use low levels of electricity. Life Line customers who consume up to 50 units pay Rs. 3.95/kWh without any fixed charges, while customers who consume 51-100 units pay Rs. 7.74/kWh.

The 01-200 units category of households pays subsidized rates, which range from Rs. 10.54 to Rs. 13.01/kWh. Data from Power Planning and Monitoring Company (PPMC) shows the number of protected consumers has nearly tripled from 9.45 million in 2022 to 21.55 million in 2026, which now represents 63% of residential consumers.

The total number of K-Electric customers rose from 28.2 million to 34.3 million while the distribution company units maintained their current number. The revised tariff establishes a financially sustainable framework that provides consumer relief while demonstrating major changes to consumption behavior.

The majority of Karachi residents now consume electricity within subsidized brackets which demonstrates how protection measures affect utility revenue while showing their impact on revenue generation.