ISLAMABAD: K-Electric has requested the National Electric Power Regulatory Authority (NEPRA) to approve a refund of Rs0.27 per unit to its consumers under the monthly Fuel Charges Adjustment (FCA) for October 2024, amounting to Rs461 million.
NEPRA has scheduled a public hearing on December 5, 2024, to examine the petition. The hearing will evaluate the justification for the proposed FCA refund and assess whether K-Electric complied with the economic merit order in its power generation and procurement activities.
In its petition, K-Electric stated that the adjustment aligns with NEPRA’s earlier decisions regarding provisional FCAs for the period July 2023 to June 2024. The company clarified that these FCAs were based on the Multi-Year Tariff (MYT) for 2017–2023 and are subject to revision upon finalization of the MYT for 2024–2030.
The October 2024 FCA was calculated using the interim tariff issued in March 2023 as the benchmark. K-Electric has provided detailed calculations and supporting documentation for NEPRA’s review and approval.
However, the utility has faced criticism over its reliance on ageing, inefficient gas-based power plants, which have been flagged as a significant contributor to higher electricity costs. Business leaders in Karachi argue that K-Electric’s failure to modernize its outdated infrastructure is burdening consumers with elevated tariffs and prompting government subsidies to maintain price uniformity.
The hearing is expected to address these long-standing concerns, with stakeholders urging NEPRA to hold K-Electric accountable for improving operational efficiency and ensuring cost-effective electricity for consumers.
Story by Zafar Bhutta
