NEPRA hikes power tariff by Rs12.68 for K-Electric

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Monday notified a raise of Rs12.68 per unit in the power tariff for the consumers of K-Electric on account of quarterly adjustment, ARY News reported.

According to details, the people of Karachi would face an additional burden of billions of rupees as NEPRA has approved an enormous Rs12.68 per unit hike in power tariff for K-Electric (KE) consumers on account of fourth quarterly adjustment for FY2021-22.

It is pertinent to mention here that K-Electric had submitted an application to the National Electric Power Regulatory Authority, seeking a hike of  Rs14.53 per unit in the power tariff.

Earlier in October, the NEPRA approved a reduction in power tariff by Rs4.89 per unit for K-Electric consumers on account of fuel cost adjustment (FCA) for August 2022.

According to the notification, the fuel cost adjustment for K-Electric consumers would be lowered by Rs4.89 per unit against KE’s petition for Rs4.21. It, however, stated that the reduction in tariff for July would be applicable for one month only.

The NEPRA said the reduction in FCA would be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, agriculture consumers and EVCS (Electric Vehicle Charging Station).

The power sector regulator conducted a public hearing on September 29. During the hearing, the issues raised pertained to whether the requested fuel price variation was justified and whether KE had followed the merit order while giving dispatch to its power plants.

The authority, during the hearing, noted that the cost of KE’s own generation was around three times higher than the cost of energy it purchases.

Upon inquiry, KE explained that it has prepared a detailed plan for the induction of cheaper energy sources, including renewables. KE submitted that it plans to induct 1,182 MWs of renewables by 2030.