NEPRA reserves verdict on Rs5.45 per unit hike for Karachi

Jamaat-e-Islami representative expresses strong opposition during session

The National Electric Power Regulatory Authority (NEPRA) has reserved its decision on K-Electric's request to raise electricity rates in Karachi by Rs5.45 per unit.

The application, submitted under the Fuel Price Adjustment (FCA) mechanism, seeks an increase for May and June.

During the hearing, K-Electric officials highlighted the increased contribution of Regasified Liquefied Natural Gas (RLNG) in June, noting its higher cost compared to the Central Power Purchasing Agency’s (CPPA) range.

The session saw heated exchanges, with Jamaat-e-Islami (JI) representatives expressing strong opposition.

Shahid Alam, representing Jamaat-e-Islami, rejected the proposed hike, criticising Independent Power Producers (IPPs) and K-Electric for producing costly electricity.

He demanded that NEPRA cancel K-Electric’s generation license and supply Karachi consumers with electricity from the National Transmission and Despatch Company (NTDC).

Alam also accused NEPRA of failing to protect consumers and acting as a rubber stamp for the government and K-Electric.

He highlighted the ongoing load-shedding issues and alleged NEPRA's inaction on illegal power transformers in Karachi’s Surjani Town.

The Korangi Association representative echoed concerns over the price hike, emphasising the severe heat and extended load-shedding in May and June, which have already burdened residents.

They warned that increased electricity bills could lead to public unrest.

NEPRA chairman defended the authority's decisions, stating that all determinations are made collectively and transparently.

He acknowledged the ongoing IMF programme's influence on tariff decisions and emphasised NEPRA's role in reducing the burden on consumers, noting a Rs260 billion relief in tariffs.

The application requested a Rs2.53 increase for May and Rs2.92 for June under FCA, potentially imposing a burden of over Rs10 billion on K-Electric consumers.

The final decision will be made after a thorough review of the data.