ISLAMABAD: Karachi residents are set to experience a significant hike in their electricity bills in October and November, following a decision by the National Electric Power Regulatory Authority (Nepra). The regulatory body has approved K-Electric’s request to impose additional charges of Rs2.5934 per unit in October and Rs3.1688 per unit in November, leading to a total increase of Rs5.763 per unit.
These increases stem from monthly fuel charge adjustments (FCA) for May and June 2024, resulting in an added burden of approximately Rs10.6 billion on consumers, which could rise to around Rs12.5 billion with GST included. Nepra’s decision, made after a public hearing on July 30, 2024, reflects higher-than-requested adjustments, despite K-Electric initially seeking a rise of Rs5.45 per unit.
During the hearing, Karachi’s industrialists, politicians, and power consumers criticized Nepra, accusing it of rubber-stamping decisions that favor K-Electric and the government, rather than protecting public interests.
Nepra’s approval was based on fuel cost components used by K-Electric for energy procured from CPPA-G, with positive adjustments noted for May and June 2024. Despite requests from industrial associations like KATI and BQATI for a provisional FCA charge of Rs1/unit due to economic hardships, Nepra approved the higher adjustment.
Opposition to the FCA increase came from political figures like Jamat-e-Islami’s Imran Shahid, who argued it was detrimental to consumers. Others questioned K-Electric’s choice of more expensive fuel sources over cheaper alternatives. However, K-Electric defended its decisions, citing merit order and load demand considerations. Nepra indicated that any shift to increase power supply from the National Grid to K-Electric would require a policy decision.
