KE Consumers to Face Rs18 Per Unit Hike in Electricity Rates
The National Electric Power Regulatory Authority (NEPRA) has reserved judgment on a proposal by K-Electric (KE) to increase electricity rates by up to Rs 18 per unit over nine months, citing fuel adjustments. KE’s application seeks to raise rates to Rs 18.86 per unit from July 2023 to March 2024, potentially affecting consumers by Rs 1.6 to Rs 2 monthly. NEPRA will determine the provisional Fuel Cost Adjustment (FCA) amount and duration, based on KE’s three proposed scenarios.
During hearings, stakeholders raised concerns and queries about the FCA and KE’s tariff structures. KE’s CEO outlined plans to integrate 640MW of affordable wind and solar power within two years to reduce costs. Responding to inquiries about power supply during exams, KE assured exemptions for matric exam centers shared by the education department from load shedding. However, NEPRA intervened when discussions veered off-topic.
Critics, including representatives from Jamaat-e-Islami, opposed the tariff hike, citing Karachi’s persistent load shedding and alleged inefficiencies in KE’s operations. Industrialists proposed staggered FCA collection over nine months to ease the burden on consumers and industries. They criticized KE for not passing on government incentives to consumers and called for NEPRA’s intervention.
It’s crucial to understand that FCAs are routine adjustments reflecting changes in generation mix and global fuel prices, subject to NEPRA’s final determination. However, KE has obtained an injunction against refunding money to consumers until the FCA is approved. Industrialists emphasized that load shedding based on feeder losses and cross-subsidy issues disproportionately affect Karachi’s industrial units, leading to closures.
In summary, NEPRA’s pending decision on KE’s proposed FCA increase has sparked debates about electricity tariffs, load shedding, and industry sustainability in Karachi. Stakeholders urge NEPRA to consider phased increases and intervene to ensure fair practices and alleviate the burden on consumers and industries alike.
