K-Electric proposes Rs4.85 per unit tariff reduction for consumers

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Karachi’s electricity consumers could see a reduction of Rs4.84 per unit in their power bills as K-Electric has filed a request with the National Electric Power Regulatory Authority (NEPRA) for a fuel cost adjustment (FCA) for January, Express News reported.

According to K-Electric’s spokesperson, if approved, the reduction will provide relief to consumers in Karachi. NEPRA will hold a hearing on the request on March 20, after which a final decision will be announced. The official statement noted that NEPRA would also determine which billing month the adjustment would apply to.

This marks the fifth consecutive instance where K-Electric consumers are receiving relief under the FCA mechanism. In previous months, power tariffs were reduced by Rs0.18 per unit in September 2024, Rs0.49 in October, Rs1.23 in November, and Rs3.00 in December.

Fuel cost adjustments are made in response to global fluctuations in fuel prices and changes in power generation sources. When fuel prices rise, electricity bills increase, and when prices fall, the benefit is passed on to consumers through FCA reductions.

K-Electric also highlighted adjustments related to partial load, degradation cruise, and startup costs under its post-June 2023 generation tariff determination.

The company has requested NEPRA to allow these costs to be adjusted against negative fuel cost variations to prevent additional financial burdens on consumers in the future.