Karachi Consumers to Face Hike in Electricity Rates

KARACHI: Karachi consumers are set to be charged Rs 2.53 and Rs 2.92 per unit for May and June consumption respectively.

The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing regarding an increase of Rs2.53 per unit and Rs2.92 per unit in the tariff for K-Electric (KE) consumers on account of monthly fuel charges adjustment (FCA) for May 2024 and June 2024 respectively.NEPRA to Launch ‘Asaan Approach’ App for Easier Electricity Complaints Tomorrow

During the hearing, the intervenors said that Nepra was a rubber stamp and was not taking into account interests of consumers.

They said that power regulator was a party of the power division and was passing on burden of electricity increase to the consumers.

They said that power regular did not implement the decisions that were in favour of consumers but implemented those decisions that were in interest of companies and government.

Claims for monthly fuel charges adjustment include the monthly variation in fuel costs of KE’s own generating plants and power purchases for May 2024 to June 2024 which will be passed on to consumers except for lifeline consumers. KE has filed the FCA on a provisional basis under the mechanism approved by the authority in the FCA decision for July 2023 to March 2024.

During the hearing, Imran Shahid from Jamaat-I-Islami argued that due to IPPs, Pakistan was producing most expensive electricity.

He further claimed that industries were getting shut down due to expensive electricity and alleged the Government of Pakistan and NEPRA for having an alliance against the power consumers in the country.

While answering to Imran Shahid’s claim, Chairman NEPRA denied all the allegations and responded that all the decisions taken by NEPRA was available on the Authority’s website and if anyone has any grievance, they can file appeal against them.

Rehan Jawed from Korangi Association of Trade and Industry (KATI) argued that due to rising electricity bills there were protests going on all over the country, and industries also do not have any other choice but to come on street and start protesting as well.

He further suggested that the upcoming FCA requested by K-Electric may be charged half in the upcoming month while the remaining be charged during winters.

Arif Bilwani, another industrialist from Karachi, questioned KE as to why high-speed diesel was used in one of KE’s power plant. While answering the question, representative from KE asserted that the utility has followed Economic Merit Order (EMO) and due to non-provision of the natural gas,

HSD was used as per EMO. Arif Bilwani also alleged NEPRA was a ‘rubber-stamp’ as it reportedly accepts any instructions coming from Ministry of Energy and the Government of Pakistan.

One of the participants of the hearing also questioned the pending dues of SSGC against KE, answering to which, KE representative briefed that KE has not defaulted on current payments to SSGC.

While answering one question regarding the recent rebasing done by NEPRA on request of Government of Pakistan, Chairman NEPRA informed that the actual petition they received from the Government was of Rs 8.28 however, due to intervention of NEPRA Authority, the rebasing was done for Rs 5.72 only and thus NEPRA saved consumer from an additional burden of 260 billion rupees.

NEPRA has reserved the judgement on KE’s petition for May and June FCA and will notify the decision accordingly.

It is also pertinent to note that EX-WAPDA DISCOs have also petitioned for Rs. 3.33 and Rs 2.63 for FCAs of May and June respectively.