K-Electric has requested the National Electric Power Regulatory Authority (Nepra) to approve a refund of Rs0.27 per unit to its consumers for October 2024 under the monthly fuel charges adjustment (FCA) mechanism, amounting to approximately Rs461 million.
Nepra has scheduled a public hearing on December 5, 2024, to assess the validity of K-Electric’s petition and determine whether the company has adhered to the economic merit order in electricity generation and procurement.
In its submission, K-Electric stated that the requested FCA adjustment aligns with Nepra’s provisional decisions on fuel costs for the period between July 2023 and June 2024. The company noted that these adjustments were based on the parameters outlined in the Multi-Year Tariff (MYT) for 2017–2023 and could be subject to further revisions once the MYT for 2024–2030 is finalised.
The October FCA has been calculated using the interim tariff from March 2023 as a reference, with detailed calculations and supporting documentation submitted for Nepra’s review.
However, K-Electric has drawn criticism for its reliance on ageing gas-powered plants, which contribute to higher electricity generation costs. Business leaders in Karachi have voiced concerns about the company’s inefficiencies, particularly its failure to modernise four-decade-old facilities. These outdated plants produce costly electricity, resulting in higher tariffs for consumers and increased government subsidies to maintain price uniformity.
The upcoming hearing will evaluate K-Electric’s adherence to operational standards and consider the refund’s impact on consumers and overall electricity pricing.
