K-Electric, the private power distribution company serving Karachi, has filed a request with the National Electric Power Regulatory Authority (NEPRA) to increase electricity tariffs by Rs 5.45 per unit. The request has been submitted under the monthly fuel adjustment mechanism for the months of May and June.
According to K-Electric, the proposed increase includes Rs 2.53 per unit for May and Rs 2.92 per unit for June. If NEPRA approves the request in full, the additional cost will amount to more than Rs 10 billion, which will be passed on to consumers.
Details of the Tariff Increase Request
K-Electric’s request outlines the following proposed increases:
May Fuel Adjustment: An increase of Rs 2.53 per unit.
June Fuel Adjustment: An increase of Rs 2.92 per unit.
Impact on Consumers
If approved, the tariff increase will significantly impact Karachi’s electricity consumers, adding substantial costs to their monthly electricity bills. The adjustment is part of the fuel cost adjustment (FCA) mechanism, which allows power companies to pass on the costs of fuel price fluctuations to consumers.
In a related development, government-owned distribution companies (Discos) have also requested a tariff increase from NEPRA. The Central Power Purchasing Agency (CPPA) has filed a request to increase the per unit price by up to Rs 2.10 for one month under the FCA mechanism.
NEPRA will conduct a hearing on the CPPA’s request on July 31, after which a decision will be made.
These requests for tariff increases reflect the ongoing adjustments in response to fluctuating fuel prices, impacting electricity costs for consumers across Karachi and potentially other regions served by government-owned Discos. The hearings scheduled by NEPRA will determine the final outcome and the extent of the financial burden on consumers.
