Karachi consumers face second power tariff hike in a week

The National Electric Power Regulatory Authority (Nepra) on Wednesday approved a Rs2.87 per unit tariff hike for consumers of K-Electric. This is the second consecutive increase in power tariff within a week. 

The latest increase of Rs2.87 per unit is part of a quarterly tariff adjustment (QTA) for the period of January to March 2023. 

The previous increase of Rs1.25 per unit, approved on December 29, was also for the same period. 

The total impact of these increases is Rs4.12 per unit, which is expected to burden Karachi consumers significantly.

The decision of Nepra has been sent to the federal government for notification. However, the spokesperson of K-Electric, Imran Rana, said that the QTA impact is usually not passed on to the consumers under a uniform tariff policy that applies to the whole country. He added that the government will take a formal decision on this matter.

Nepra said that the increase was aimed to clear the backlog of quarterly tariff adjustments and to implement a uniform tariff policy and regulatory regime across the country. 

The federal government had approved the increase in line with the National Electricity Policy 2021 to maintain a standard consumer-end tariff for K-Electric and state-owned distribution companies.

Nepra had also notified an additional fuel cost adjustment of Rs3.08 per unit for the consumers of ex-Wapda distribution companies for the power consumed in October 2023, with a net financial impact of about Rs 28.5 billion. The adjustment will apply to all consumer categories, except electric vehicle charging stations and lifeline consumers.