NEPRA Approves New 7-Year Tariff Plan for K-Electric in Karachi

KARACHI – The National Electric Power Regulatory Authority (NEPRA) has officially approved a seven-year tariff plan for K-Electric, effective from 2024 to 2030, to regulate the power distribution company’s performance and pricing in Karachi.

According to NEPRA, the revised tariff will be set at PKR 3.31 per unit for K-Electric’s distribution operations. The decision is aimed at ensuring more sustainable and efficient service delivery to consumers across the city.

K-Electric’s Request Cut Short

K-Electric had proposed a higher tariff of PKR 3.83 per unit, citing rising operational and financial needs. However, after a detailed evaluation, NEPRA approved a lower rate of PKR 3.31 to strike a balance between affordability for consumers and operational sustainability for the company.

Fuel Charges Adjustment (FCA) Also Approved

In a separate matter, NEPRA had earlier approved a fuel charges adjustment (FCA) of Rs 0.689 per unit for the month of July 2021. The total impact of this adjustment is around Rs 1.355 billion, which was to be recovered through electricity bills in November 2021.

This FCA applies to all categories of K-Electric consumers, except lifeline customers, who are typically low-usage households that receive subsidized rates.

Previous FCA Hearing and Loadshedding Issues

The FCA hearing was conducted on September 2, 2021, covering fuel price variations for July 2021. This was part of NEPRA’s regular review process to adjust tariffs based on fluctuations in fuel costs.

Additionally, NEPRA had previously rejected K-Electric’s explanation regarding the ongoing loadshedding issues in Karachi, demanding more accountability and improvement in service reliability.