KARACHI: The K-Electric, the sole power utility in Karachi, on Thursday has sought an increase of Rs5.50 per unit in its power tariff under fuel adjustment charges.
The power utility has submitted a request to the National Electric Power Regulatory Authority (Nepra), seeking an increase of Rs5.18 for July to September 2021, and rupee 0.32 for November.
Meanwhile, the national power regulator has decided to hold public hearing on these petitions on January 03, 2022 to examine if data provided by the power companies justified such tariff increases.
In November 2021, the Nepra had allowed the federal government to notify an Rs1.68 per unit increase in base power tariff for all residential consumers and Rs1.39 per unit for all other consumer categories, in order to meet another requirement of the International Monetary Fund’s programme.
Federal Minister for Energy Hammad Azhar revealed last month that the government had asked national power regulator to increase the power tariff to stem Pakistan’s soaring circular debt.
Earlier this month, the Nepra had approved K-Electric request to increase Fuel Charges Adjustment for the month of September by Rs3.75 per unit.
Under the tariff mechanism, changes in fuel cost are passed on to consumers only on monthly basis through an automatic mechanism, while quarterly tariff adjustments on account of variation in the power purchase price, capacity charges, variable operation and maintenance costs, use of system charges and including the impact of transmission and distribution losses are built in the base tariff by the federal government.
