ISLAMABAD: The electricity consumers of K-Electric are likely to face power tariff hike of Rs 1.72 per unit as the National Electric Power Regulatory Authority (NEPRA) on Wednesday conducted a public hearing on the motion filed by the power division.
Earlier, the Ministry of Energy (Power Division) asked NEPRA to apply quarterly adjustments (QTA) of PKR 0.4689 per unit and PKR 1.2489 per unit on the power consumers of the K-Electric (KE) for the 2nd and 3rd quarter of FY22-23 respectively.
The Energy Ministry filed the request to maintain uniform tariff across the country, as these charges have already been determined for the power distribution companies (DISCOs).
During the course of NEPRA hearing, power division official said that this increase has not been applied to K-Electric, so these collections have to be made now from KE consumers. However, the business community of Karachi have strongly opposed increasing the price of electricity.
Traders said that increase in electricity prices on monthly basis is no longer a bearable burden for them. They said that increase in electricity prices on account of the fuel price and sometimes the uniform tariffs are affecting businesses. They said If electricity is made expensive, everything will be expensive. Karachi is an industrial and business hub, please let the business run, a businessman said during public hearing.
The NEPRA Authority completed the hearing on the request of the Federal Government. However, the decision for the second and third quarters under the uniform tariff will be issued later, NEPRA said.
KE, in a statement, said NEPRA will further scrutinize the request and issue a final decision through a determination on the amount to be passed on to customers as part of procedure. Distribution Companies across Pakistan operate in a regulated environment, and follow the directions issued by NEPRA and the Government of Pakistan regarding the costs of electricity to be applied on customers’ monthly bills. Individual Distribution Companies cannot influence the process or make unilateral changes.
K-Electric (KE) is a publicly listed company incorporated in Pakistan in 1913 as KESC. Privatised in 2005, KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square kilometres territory including Karachi and its adjoining areas.
The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.
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