Karachi users may see reduction of Rs 4.98 in electricity tariffs: K-Electric

NEPRA will release its final decision on K-Electric’s tariff adjustment after a detailed review.

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Karachi’s consumers may soon see a reduction in electricity tariffs following a request by K-Electric to the National Electric Power Regulatory Authority (NEPRA) for a fuel cost adjustment.

K-Electric has requested a reduction of Rs4.98 per unit for the month of November, Express News reported.

During a hearing, NEPRA member Maqsood Anwar remarked that K-Electric heavily relies on the National Transmission and Despatch Company (NTDC) for its power supply, suggesting that perhaps K-Electric should be given a generation licence.

K-Electric representatives explained that the company’s power plants are receiving capacity payments between Rs6 to 7 per unit.

The demand for electricity has increased by 13% annually, with residential consumption seeing a notable rise.

Another NEPRA member, Rafique Sheikh, questioned K-Electric’s projections for growth over the next five to six years, especially considering the increasing role of solar power and other sources.

K-Electric officials responded that growth would likely increase once captive plants are shifted.

K-Electric’s officials also provided a breakdown of the company’s electricity sources in November.

They explained that 62% of the electricity was purchased from NTDC, which provided cheaper electricity compared to other sources. Additionally, 21% came from LNG, and 13% from furnace oil.

Compared to October, K-Electric's average demand in November was 2,300 MW, representing a 12% decrease from October’s demand of 2,600 MW.

Following the public hearing, NEPRA confirmed that K-Electric’s request for a Rs4.98 per unit reduction under the Fuel Cost Adjustment (FCA) for November is under review.

Last month, K-Electric had a Rs0.49 per unit reduction in its FCA for October.

The reduction, if approved, will apply to all K-Electric consumers, except for lifeline users, those consuming fewer than 300 units per month, prepaid customers, agricultural users, and electric vehicle charging stations.

NEPRA will release its detailed decision after further analysis of the data.