Another massive hike in electricity prices likely

KARACHI: K-Electric has filed an application with the National Electric Power Regulatory Authority (NEPRA) seeking another hike in power tariff.

The utility company submitted the request under the fuel cost adjustment (FCA) mechanism for the months of May and June. The sole power utility has sought an increase of Rs 5.45 per unit.

If approved, the price hike will see an increase of Rs2.53 per unit for May and Rs2.92 per unit for June, reflecting higher fuel prices.

NEPRA has scheduled a hearing on July 30 to review K-Electric’s application and make a final decision on the proposed tariff increase.

The potential increase in electricity costs is not limited to Karachi as consumers of state-owned distribution companies (DISCOs) may also face higher bills.

The Central Power Purchasin Agency (CPPA) has submitted a similar request to NEPRA, seeking an increase of Rs2.10 per unit for one month under the monthly FCA.

Earlier in the day, Pakistan’s business community leaders on Saturday unanimously demanded of the government for decreasing power rates

“We have to pay 2,100 billion rupees for capacity charges this year,” the chambers of commerce of Karachi, Lahore, Multan and Faisalabad have said. “Either the government save 240 million people of the country or 42 IPPs,” the chambers officials said while commenting over the inflated power tariffs in the country.