K-Electric’s electricity production cost surpasses national grid: NEPRA

The National Electric Power Regulatory Authority (NEPRA) has disclosed in official documents that K-Electric generated electricity in February at a cost 143 percent higher than that of the national grid, ARY News reported.

According to reports, the utility generated power from its own resources at Rs 20.01 per unit, while the cost of electricity supplied by the national grid was only Rs 8.23 per unit, as per NEPRA records.

The interconnection capacity between K-Electric and the National Transmission and Despatch Company (NTDC) has now reached 1600 megawatts. Member Technical of NEPRA, Rafiq Shaikh, praised this expansion in interconnection capability, calling it a commendable step.

Rafiq Shaikh noted that increasing interconnection capacity will enhance K-Electric’s reliance on NTDC, which will eventually help provide cheaper electricity to consumers in Karachi.

He stressed the need for immediate upgrading of interconnection capacity to ensure better energy access and cost efficiency.

Earlier, NEPRA announced a reduction in electricity prices for Karachi citizens, giving essential relief to consumers facing high energy costs.

According to the reports, NEPRA’s latest notification will help K-Electric consumers have a reduction of Rs3.64 per unit under the monthly fuel adjustment for February 2025.

Simultaneously, electricity consumers nationwide will have an advantage from a reduction of Rs1.55 per unit as part of the third quarterly adjustment for the current fiscal year.

This updated price cut will be mentioned in the electricity bills, which will be issued in May 2025, ensuring the benefits to the great number of households and businesses.

However, lifeline and protected consumers are not eligible to avail this relief and are excluded from this offer.

NEPRA plans to save electricity consumers a total of Rs52.6 billion, facilitating financial burdens amid increasing inflation.

The authority has stressed that these modifications are under overarching economic strategies designed to stabilize energy expenses and enhance affordability.

Consumers can expect reduced electricity bills from May to July 2025, with the updated tariffs being automatically reflected in their monthly statements.