ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) while accepting the request of power division has increased the price of electricity by Rs 1.72 per unit for the electricity consumers of K-Electric (KE).
NEPRA approved the government’s request to increase the price of electricity for the power consumers of KE by Rs 1.72 per unit price of electricity and sent the decision to the federal government for notification.
This approval has been given by NEPRA for the 2nd and 3rd quarter of FY22-23 respectively after conducting a public hearing on the motion filed by the power division in this regard.
According to NEPRA’s decision, the Authority (NEPRA) has considered the submissions made the Federal Government in the Motion, the Guidelines forwarded by the Ministry and the comments of the stakeholders.
The Authority noted that the instant Motion has been filed by the Federal Government to make the tariff uniform across the country, keeping in view the National Electricity Policy 2021. The Authority has therefore decided to accept the Motion filed by the Federal Government, said NEPRA decision.
The Authority has also accepted the request of the Federal Government to issue separate SoTs for the allowed increase in tariff for all categories of consumers of K-Electric except life line, the decision added.
As per NEPRA decision, the rate of Rs.0.4689/kWh shall be applicable on the consumption of April, May and June 2023 to be recovered from consumers of K-Electric in a period of three months i.e. from Jan. 2024 to Mar. 2024 respectively.
Similarly, the rate of Rs. 1.2489/kWh shall be applicable on the consumption of July, August & September 2023 to be recovered from consumers of K-Electric in a period of three months from January 2024 to March 2024 respectively.
The amount so allowed to K-Electric through instant decision shall be accounted for by K-Electric in its subsidy claims and the Federal Government shall take into account this amount while processing the subsidy claims of K-Electric. The instant decision is intimated to the Federal Government for notification in terms of Section 31(7) of the Act, said NEPRA decision.
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). And, the NEPRA conducted public hearing in this regard to draw a conclusion.
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.
KE, in a statement, said power distribution companies (DISCOs) 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.
Again hike in prices please stop now
NEPRA is most expsensive these days.
How can someone claim further billing on already paid in full bills. Mafia at work here.
This decision by NEPRA to raise electricity prices by Rs 1.72 per unit for K-Electric consumers in Islamabad reflects a concerning trend in escalating energy costs. The impact on consumers and government response await observation.
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