Karachi's electricity consumers may see a reduction in their bills as KE has requested a 0.27 paisa per unit decrease in electricity prices.
The request has been filed with the National Electric Power Regulatory Authority (NEPRA) for the month of October under the monthly fuel adjustment mechanism, Express News reported.
NEPRA is scheduled to hear KE's request today, with the price cut potentially providing over Rs 460 million in relief for consumers.
A NEPRA official confirmed that the regulatory body would also be reviewing KE’s adherence to the merit order in its operations. The authority has sought a report on this matter from KE.
Should the price reduction be approved, it would offer some relief to Karachi’s electricity users, who have been facing higher costs due to rising energy prices.
However, last week, Energy Minister Awais Ahmed Khan Leghari announced that following revisions to agreements with Independent Power Producers (IPPs), electricity prices in the country are set to decrease by up to Rs5 per unit, reported Express News.
Speaking at a briefing session on the electricity facilitation package at the FPCCI office in Islamabad on Friday, he highlighted the crucial role played by the business community in propelling the country's economy.
"As an agriculturist, I must say, we are now also subject to a 45% tax. Pakistan has never followed a formula for cheap electricity in its history," Leghari stated. "Going forward, from the 17,000 megawatts, we have already purchased 7,000 megawatts of electricity," he added.
He pointed out that even among the 17,000 megawatts, 87 megawatts failed to meet the criteria for affordable electricity, adding, "There are no sacred cows in the power sector anymore."
The energy minister stressed that the government is bringing in the best talent from both the public and private sectors.
"We’ve already shut down five IPPs, and are working on initial steps with 11 more IPPs. In the future, no new IPPs will be set up in Pakistan. This is a revolution, and revolutions like this don’t happen on D-Chowk," he added.
Leghari also revealed that agreements have been made with the BEGAS power plants, and noted that IPPs had been informed that if electricity prices remained so high, no one would be willing to buy it. He confirmed that after revising the IPP contracts, electricity could become Rs5 cheaper.
Regarding the winter package, Laghari clarified, "The winter package is simply a facilitation package and has nothing to do with the season." He also pointed out that at present, no other country in the region is paying 26 rupees per unit for electricity.
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