Electricity prices set to drop significantly for Karachi residents

NEPRA conducted a hearing on KE Electric's monthly fuel adjustment request for November.

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As electricity prices are expected to reduce following the revised IPP agreements, consumers in Karachi are also likely to see a decrease in per-unit electricity rates.

Following the public hearing on KE Electric’s monthly fuel charges adjustment, NEPRA confirmed that the company had requested a reduction of Rs 4.98 per unit. This followed a previous adjustment in October, where a reduction of Rs 0.49 per unit was implemented.

According to KE Electric officials, the November fuel charge adjustment will be Rs 4.49 less per unit compared to October. This reduction will apply to all KE Electric customers, except lifeline consumers, those using up to 300 units per month, prepaid users, agricultural customers, and electric vehicle charging stations.

The National Electric Power Regulatory Authority (NEPRA) held a hearing regarding KE Electric's monthly fuel adjustment request for November. The company had requested a reduction of Rs 4.98 per unit.

During the hearing, NEPRA member Maqsood Anwar remarked that KE Electric’s heavy reliance on NTDC (National Transmission and Dispatch Company) raises the question of whether KE Electric should be granted a generation license itself.

Officials representing KE Electric stated that the company's power plants have a capacity payment of Rs 6-7 per unit, and electricity demand has increased by 13% annually, with a significant rise in demand from the domestic sector.

NEPRA member Rafiq Sheikh asked about projected growth over the next 5-6 years, considering solar and other alternative energy sources. In response, KE Electric officials mentioned that shifting to captive plants would contribute to increased growth.

During the hearing, KE Electric officials provided a briefing, revealing that in November, they bought 62% of their electricity from NTDC, which was comparatively cheaper. The remaining power was generated from LNG (21%) and furnace oil (13%).

The average demand in November was 2300 MW, lower than the 2600 MW in October, marking a 12% reduction in electricity demand from October.

When compared to the same period last year, the demand has increased, with the previous year's November demand at 2000 MW.

NEPRA will issue a detailed decision after further reviewing the data.