KE Consumers to Face Rs 4.49 per Unit Hike in Electricity Rates

Consumers of K-Electric (KE) are likely to face an increase of PKR 4.49 per unit in electricity rates due to fuel adjustments for the month of March 2023.

K-Electric has submitted a petition to the National Electric Power Regulatory Authority (NEPRA) to increase electricity rates in response to higher energy prices used for electricity generation in March.Check KE Duplicate Bill in 2023 | How To Check Online

NEPRA has announced that a hearing for KE’s petition for fuel charge adjustments (FCA) for March 2023 will be held on May 3.

Fuel Charge Adjustments (FCA) are incurred by utilities due to global variations in fuel prices used to generate electricity and changes in the generation mix.

Nepra allows the power distribution companies including KE to pass on these costs to customers.

And these revisions in electricity rates typically apply to only one month’s electricity bill.

Customers also benefit when the cost of fuel decreases.

For March, K-Electric has filed a petition for a positive FCA rate of PKR 4.49 per unit. This is primarily due to an increase in fuel prices of Regasified Liquefied Natural Gas (RLNG) and the Central Power Purchasing Agency – Guaranteed (CPPA-G).

The price of power purchased from CPPA-G in March 2023 has increased by 41% compared to December 2022.

K-Electric has been taking around 1000 MW of electricity from CPPA-G, and therefore, any fluctuations in its rates impact energy prices for consumers in Karachi.

K-Electric also takes gas from Sui Southern Gas Company (SSGC) to generate electricity from its power plants.

Similarly, the price of RLNG purchased from SSGC increased by 14% from December 2022.

KE also takes RLNG from Pakistan LNG Limited (PLL) in line with a contract. Therefore, the price of RLNG purchased from PLL increased by 20% in the same period.

However, the price of furnace oil decreased by 10% in March 2023 compared to December 2022. Furnace oil is also used in power plants to generate electricity.

KE stated that the responsibility for determining FCA charges and any other costs to be recovered from customers in their monthly bills rests with NEPRA and the Government of Pakistan, and follows the prevailing rules and regulations of the country.