The National Electric Power Regulatory Authority (NEPRA) has increased electricity rates for K-Electric (KE) consumers by Rs0.40 per unit as part of the monthly adjustment for August 2024, with additional charges to be collected in January 2025. NEPRA issued a notification confirming the hike, despite K-Electric’s recent request for a power tariff reduction of Rs0.16 per unit due to a decrease in fuel costs for September.
Tensions surfaced during a NEPRA hearing on KE’s September fuel cost adjustment (FCA), where a member of the public questioned perceived favoritism toward the utility company. The speaker highlighted discrepancies between fuel adjustment tariffs for K-Electric and the Central Power Purchasing Agency (CPPA-G), raising concerns over NEPRA’s recent approval of KE’s generation tariff.
The hearing intensified with accusations of unfair support for KE, with some alleging the regulatory process was biased toward the utility. NEPRA responded by inviting the public representative to a separate review session to address grievances, emphasizing its commitment to transparency and urging the public to examine detailed justifications behind its decisions.
Clarifying its role, NEPRA stated that it enforces compliance within established policies rather than creating new policies and emphasized that sector-wide tariff cuts are not feasible. It reiterated its commitment to fair electricity generation and distribution, balancing consumer concerns with regulatory obligations.
KE officials explained the Rs0.40 per unit increase was due to a shift in the fuel mix. The BQPS-3 unit’s availability enabled greater reliance on RLNG, significantly reducing furnace oil usage from 13% to 2% compared to the reference period. KE assured NEPRA of strict adherence to Economic Merit Order protocols, with compliance reports submitted regularly.
The utility reported that demand in Karachi has fallen, mirroring a national trend, though growth is expected as the economy improves and borrowing rates decrease. KE noted that its recent FCA adjustments have been generally lower than those of the national grid.
NEPRA also confirmed that KE’s Multi-Year Tariff (MYT) petition for FY24–FY30 is still under review. Inquiries regarding fatality incidents in KE’s area for 2022–2023 were also addressed, with NEPRA confirming that 32 cases ruled out negligence by KE. Compensation has been ordered for incidents where utilities were found liable, though NEPRA clarified that its role is regulatory, not enforcement.
The regulatory body will later issue a formal notification specifying the FCA adjustments, ensuring clarity on the timing and amount for consumer relief.
