K-Electric (KE) consumers could receive a fuel charges adjustment (FCA) relief of Rs4.84 per unit for January 2025, potentially reducing electricity bills by an estimated Rs4.695 billion.Â
The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing on Thursday to review KE’s petition seeking the tariff reduction due to lower fuel costs.
During the hearing, stakeholders pushed for passing the full benefit to consumers, while KE emphasised the need for a balanced approach. Company representatives cited factors such as partial load charges, open-cycle operations, degradation curves, and startup costs, arguing that adjustments might be required during peak summer months to prevent financial burdens on consumers when electricity demand rises.
Responding to questions on KE’s reliance on the national grid, Chief Generation & Transmission Officer Abbas Hussain stated that KE’s power generation peaked at 2,400 megawatts in January, with only 4% of the total supply coming from its own plants. NEPRA questioned this production level, prompting KE officials to clarify that some plants were kept operational to maintain system stability.
Discussions also covered KE’s integration with the national grid. The company confirmed that all four existing interconnections are functioning, but legal and administrative hurdles at the National Transmission and Despatch Company (NTDC) have delayed the KE Kanupp Interchange (KKI) Grid interconnection. NEPRA urged NTDC to provide a timeline for completing the pending transmission line.
KE CEO Moonis Alvi stated that further interconnections would only be viable with a firm NTDC commitment to increasing power supply. Currently, NTDC supplies KE with 1,200MW on a firm basis, with an additional 1,000MW dependent on availability.
Addressing subsidy concerns, NEPRA clarified that KE does not receive operational subsidies. Instead, the federal government provides subsidies to KE consumers under the national uniform tariff policy. It was noted that over Rs800 billion in subsidies had been granted to KE consumers, but KE itself was not a direct beneficiary.
KE also pointed to reduced electricity demand due to cold weather and increased adoption of rooftop solar solutions. The company suggested that integrating captive power plants into the national grid could help revive industrial consumption.
Meanwhile, NEPRA has sought details from all power distribution companies (DISCOs) regarding interest earned on amounts accumulated in payables to net-metering prosumers.
During the hearing, industry representative Rehan Javed called for predefined cost limits to ensure efficiency and accountability, arguing that costs should only be passed on to consumers after verification. NEPRA acknowledged these concerns, stating that it must balance consumer protection with industry sustainability.
Additionally, Karachi Chamber of Commerce and Industry (KCCI) Vice President Tanveer Barry appreciated KE’s efforts to ensure uninterrupted power supply during Ramzan and its responsiveness to KCCI’s requests to end load shedding.
