KARACHI: K-Electric has formally requested a reduction of Rs4.95 per unit in electricity rates for December, under the monthly fuel adjustment mechanism. The National Electric Power Regulatory Authority (NEPRA) has decided to reserve its ruling on the matter, pending a thorough review. The final decision will be communicated at a later date.
During the hearing for K-Electric’s December fuel adjustment application, the utility company put forward its request for a tariff reduction of Rs4.95 per unit, while also seeking approval for adjustments related to arrears totaling Rs5 billion.
K-Electric explained that these arrears stemmed from partial load operations, open cycle, and startup costs. However, the request faced significant opposition from K-Electric’s consumers, with some arguing that the full benefit of the fuel adjustment should be passed on directly to the public.
Additionally, concerns were raised about ongoing load shedding in Karachi’s commercial areas and the lack of implementation of the industrial support package. NEPRA officials pointed out that K-Electric has taken legal action against the industrial support package in court.
Representatives from K-Electric revealed that in December, electricity produced by the company’s own resources was priced at Rs18.60 per unit, compared to Rs9.60 per unit from the Central Power Purchasing Agency (CPPA).
NEPRA concluded the hearing, but has reserved its judgment, which will be issued after a thorough review of the data and calculations. A final decision and official notification will be announced in due course.
