K-Electric generates 200pc expensive power than national grid: Document

ISLAMABAD: K-Electric has been generating electricity at a cost 200% higher than the national average, ARY News reported on Thursday.

According to a document, K-Electric generated electricity at a cost of over Rs. 58 per unit, with an average cost of Rs. 26.80 per unit in June.

K-Electric’s power generation costs are higher than the national grid’s average cost of Rs. 9 per unit. The company’s expensive power generation methods include diesel, which cost Rs. 58.10 per unit in June, and furnace oil, which cost Rs. 41.80 per unit.

K-Electric also generated power using LNG and gas in June, at a cost of Rs. 38.10 per unit and Rs. 8.80 per unit, respectively.

The high cost of power generation by K-Electric has put an additional burden on the people of Karachi, who are already struggling with high electricity bills.

Yesterday, National Electric Power Regulatory Authority (NEPRA) confirmed electricity overbilling by all power distributing companies (DISCOs) including K-Electric, in April and June and sought an explanation from the companies on the matter.

According to the official notification, NEPRA decided to issue directions to all distribution companies, to adjust the bills of consumers according to the actual units consumed.

The notification stated that the companies had charged consumers more than the actual units consumed in April and June, which is a violation of NEPRA’s rules. The companies will have to adjust the bills of consumers according to the actual units consumed.

READ: NEPRA confirms overbilling by all DISCOS including K-Electric

NEPRA also directed the companies not to charge late payment surcharges from consumers who could not pay their bills on time. The companies will have to adjust the bills of consumers who have paid their bills with late payment surcharges.

The notification further stated that the companies will have to replace all defective meters immediately to avoid overbilling. The companies will have to submit a compliance report to NEPRA within 30 days.

Electricity overbilling

Over 0.3 million power consumers moved out of the protected category and had to pay inflated electricity bills in the month of June due to a new billing system introduced by DISCOs on the orders of the Ministry of Energy.

Consumers in the protected category receive certain protections or benefits, such as subsidised rates or exemptions from price increases.