K-Electric to recover Rs3 per unit subsidy availed by consumers

KARACHI: Following the approval by the National Electric Power Regulatory Authority (NEPRA), K-Electric has decided to recover Rs3 per unit subsidy, previously extended to industrial consumers, ARY News reported on Wednesday.

The federal government gave a subsidy of Rs3 per unit to industrial consumers in Karachi from July to December 2019 under the industrial relief package for peak hours and off-peak hours.

In January 2022, the then government slashed the subsidy, but the decision was challenged in the Supreme Court by the industrialists.

However, the apex court dismissed their complaints and stated that the government has the prerogative to withdraw subsidies. This allows K-Electric to recover the Rs3/unit subsidy availed by industrial consumers from July to December 2019.

Today, NEPRA issued a revised decision regarding recovery from industrial consumers of Karachi. Following the decision, the K-Electric decided to Rs3 per unit subsidy, previously extended to industrial consumers, within two months.

The regulatory authority also forwarded the revised decision to the federal government for issuance of a notification in this regard.

NEPRA, in its judgement, said tariff adjustment should be done for industrial consumers of Karachi within 2 months after notification.

It is pertinent to mention here that NEPRA on Nov 24 approved a hike in the electricity tariff by Rs1.52 per unit for K-Electric consumers.

In line with the June 2023 directive from the Economic Coordination Committee (ECC), NEPRA has issued a notification announcing an increase of Rs1.52 per unit in electricity charges, a press release read.

The adjustments will reflect on monthly electricity bills from December 2023 to November 2024.

The K-Electric spokesperson clarified that NEPRA’s notification aligns with an ECC decision related to charges from the previous tenure.

‘The extended duration in finalizing KE’s tariff has been a contributing factor to the current circumstances, resulting in lower charges from Karachi in comparison to other regions in the country. Operating within the regulated framework of Pakistan’s power sector, KE, like other DISCOS, adheres to decisions made by the government of Pakistan and NEPRA concerning power tariffs.’