K-Electric (KE) has proposed a reduction of Rs. 4.84 per unit under the Fuel Charges Adjustment (FCA) for January 2025, prompting the National Electric Power Regulatory Authority (NEPRA) to call a public hearing on March 20, 2025, to review the request.
The regulatory body will assess whether the proposed reduction, based on the interim reference tariff of March 2023, is justified.
Industry sources stated that if the proposed reduction is approved, K-Electric consumers could receive an estimated relief of Rs. 4,695 million in their electricity bills.
In addition to the FCA reduction, KE has sought regulatory approval for an adjustment of Rs. 13.5 billion in accumulated fuel costs incurred between July 2023 and January 2025. The company has cited pending determinations related to power plant operations, partial load, open cycle functioning, degradation curves, and startup costs as key factors requiring NEPRA’s consideration. The outcome of the hearing is expected to have a direct impact on electricity tariffs for consumers in Karachi.
NEPRA’s review will focus on whether KE adhered to the merit order while dispatching power from its own plants and procuring electricity from external sources. Additionally, the regulator will evaluate the utility’s proposal to adjust pending fuel costs from negative FCA variations recorded in December 2024 and January 2025. These considerations will be crucial in determining the extent of financial relief that may be passed on to consumers.
 The hearing will be conducted at NEPRA Tower in Islamabad, with an option for online participation.
To ensure transparency, NEPRA has invited consumers, industry representatives, and other stakeholders to submit their comments and objections before the proceedings. The regulator has also made all relevant documents, including KE’s FCA request, regulatory codes, and previous determinations, available on its official website (www.nepra.org.pk).
