ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) announced on Friday an increase of up to Rs3.23 per unit in electricity rates for K-Electric consumers over the next four months (June to September) to address a nine-month backlog of fuel cost adjustments (FCA).
K-Electric had requested a cumulative FCA of about Rs18.6 per unit for the three quarters from July 2023 to March 2024, aiming to collect up to Rs26 billion from consumers. Nepra provisionally approved about half of this request, distributing the adjustments to mitigate consumer burden. Consequently, consumers will face an additional FCA of Rs2.68 per unit in June, Rs3.11 per unit in July, Rs3.22 per unit in August, and approximately Re1 per unit in September.
This adjustment plan enables K-Electric to collect around Rs12 billion over four months. For example, the positive FCA of Rs4.49 for October 2023 was paired with a negative FCA of Rs1.82 per unit, resulting in a net increase of Rs2.68 per unit in June. Similarly, the positive FCAs for July and September 2023, combined, will add Rs3.11 per unit in July 2024 bills. Other combinations were made to distribute the additional burden more evenly across the months.
Interestingly, Nepra member Sindh Rafique A. Shaikh did not sign the determination, while Chairman Waseem Mukhtar, who was abroad, did.
In its statement, K-Electric welcomed Nepra’s notification, highlighting that customers of other distribution companies have already undergone similar monthly FCA adjustments. The regulator noted that the adjustments are provisional and within the approved tariff framework, as the multi-year tariff for 2023-30 has yet to be determined.
K-Electric had proposed three options for recovering the additional FCA on a provisional basis to avoid sudden consumer burden. Nepra’s approval represents a balance between these options, aiming for a manageable impact on Karachi’s electricity consumers.
Story by Khaleeq Kiani
