Consumers of power distribution companies (DISCOs) and residents of Karachi, the country’s economic hub, are bracing for another round of electricity price hikes as the power regulator considers further increases.
K-Electric, the utility serving Karachi, has petitioned the National Electric Power Regulatory Authority (Nepra) for a Rs5.45 per unit hike in electricity prices due to fuel cost adjustments. The request specifies increases of Rs2.53 for May and Rs2.92 for June in its application to Nepra.
Nepra is scheduled to conduct a public hearing on K-Electric’s proposal on July 30, after which a final decision on the price adjustment will be made.
In a separate development, the Central Power Purchasing Agency (CPPA) has also submitted a request to Nepra seeking a Rs2.10 per unit increase for one month under the fuel cost adjustment mechanism. Nepra will review this request in a hearing scheduled for July 31, with potential implications for future electricity bills pending approval.
Fuel cost adjustment allows power companies to reflect changes in fuel prices by adjusting electricity tariffs accordingly. This mechanism ensures that the actual cost of fuel used in electricity generation is accurately reflected in consumer bills, thereby enabling companies to recover additional expenses or reduce tariffs based on fluctuations in fuel costs.
Nepra oversees and approves these adjustments to ensure they are reasonable and transparent. The costs associated with fuel used in electricity generation—such as natural gas, coal, and oil—are passed on to consumers as a separate item on their electricity bills.
