KE hikes power tariff by Rs4.45 per unit

In a setback for the citizens of Karachi, the National Electric Power Regulatory Authority (Nepra) on Wednesday gave the nod to a hike of K-Electric’s tariff by up to Rs4.45 per unit as the first quarter adjustment of the previous financial year.

The power regulator has sent its decision to increase the price of electricity for Karachi to the federal government for the issuance of a notification.

“[The] instant motion is being filed with respect to consumer-end tariff recommendations of KE [K-Electric], under Section 7, 31(4) and 31(7) of the NEPRA Act read with Rule 17 of the NEPRA Rules so as to reconsider and issue for KE, modified uniform variable charge, to maintain uniform tariff across the country and to recover the revenue requirements of KE determined by the authority keeping in view the proposed targeted subsidy and cross subsidies,” Nepra’s intimation of its decision to the federal government read.

“The authority is, accordingly, requested to issue [a] separate SoT [schedule of tariff] with prospective application of applicable uniform rates after incorporating tariff rationalisation i.e. Rs.0.4689/kWh for all categories of consumers of K-Electric, except lifeline consumers. The adjustment shall be applicable on the consumption of April, May [and] June 2023, to be recovered from consumers in Sept, Oct and Nov 2023, respectively,” it added.

Read IMF allows leeway on electric bills, raises gas prices by 50%

“The MoE [Ministry of Energy] .. referred to Section 31 of NEPRA Act which states that ‘The authority shall, in the determination, modification or revision of rates, charges and terms and conditions for the provision of electric power services, be guided by the national electricity policy, the national electricity plan and such guideline, as may be issued by the federal government in order to give effect to the national electricity policy and national electricity plan’ and ‘ The authority, in the determination, modification or revision of rates, charges and terms and conditions for the provision of electric power services shall keep in view the economic and social policy objectives of the federal government’,” the document continued.

“The MoE further provided policy guidelines issued by the federal government to NEPRA for [the] uniform application of quarterly adjustments on XWDISCOs and K-Electric consumers, that in the onward quarterly tariff determinations of XWDISCOs, NEPRA shall also determine the same tariff rationalisation to be recovered from K-Electric consumers with same applicability period, keeping in view financial sustainability of the sector and uniform tariff policy of the federal government,” the decision further stated.

“In light of [these] policy guidelines, the MoE requested the authority to reconsider its decision dated 22.05.2023, and issue [a] separate SoT with prospective application of applicable uniform rates after incorporating [the] tariff rationalisation requested in [a] motion dated 17.03.2023 (Rs1.4874 to Rs4.4547/kWh for different consumer categories, except lifeline consumers),” it concluded.