KE Consumers To Face Rs3.7 Per Unit Increase In Electricity Rates

National Electric Power Regulatory Authority (Nepra) has indicated to increase electricity rates by Rs 3.70 per unit that will reflect in K-Electric electricity bills May 2023.

The power regulator indicated an increase on account of fuel adjustment for month of March 2023 due to expensive use of fuel in power generation.

Regarding K Electric’s March monthly fuel charges adjustment, a public hearing was completed at NEPRA headquarters.

Nepra in a statement said that K Electric had submitted a request for an increase of Rs 4.49 per unit under FCA, but according to NEPRA’s data analysis, the increase in March FCA amounts to Rs 3.70 per unit, which will be applicable for one month only.

The increase will put an additional burden of Rs 5.47 billion on electricity consumers in Karachi.

This will apply to all K Electric customers except Lifeline and electric vehicle charging stations.

NEPRA announced to issue its detailed decision later after further scrutiny of the data.
It was informed that K Electric generated electricity from its sources at cost of Rs 26.44 per unit in March.

The cost of electricity received from the federal government was Rs 9.50 per unit.
Additionally, the price of LNG from Sui Southern increased by 14%.Th price of LNG received from PLL increased by 20 percent during March that led to increase in electricity cost.

The price of electricity received from CPPA increased by 41%.

On the other hand, K Electric officials stated that they added 1900 MW of power to its system, and electricity production capacity improved by 19%.

However, Chairman Nepra expressed concern that in the last 5-7 years, the K-electric had not shown much improvement. Moreover, electricity production on imported fuel has become very expensive.

The reliance on alternative and cheap sources is increasing due to expensive electricity, Chairman Nepra added.