Karachi consumers likely to get Rs4.95 per unit cut in power tariff

Karachi consumers likely to get some relief as K-Electric (KE) has proposed a reduction in power tariffs by Rs4.95 per unit for December 2024, citing fuel charges adjustments.

The National Electric Power Regulatory Authority (NEPRA) has arranged a public hearing on February 26 to evaluate KE’s request for a negative fuel charges adjustment (FCA).

NEPRA has outlined three key questions for discussion during the hearing: whether the requested FCA is justified, whether KE has adhered to the merit order in dispatching power from its plants and external sources, and whether the adjustment for accumulated fuel costs due to partial load, open cycle, degradation curves, and startup costs from July to December 2024, from the negative fuel cost variation, is justified.

KE’s petition states that the adjustment is grounded in the interim reference tariff of March 2023, resulting in a total fuel cost reduction of Rs4.94 billion.

Furthermore, KE has asked NEPRA to consider an additional Rs5 billion adjustment for fuel costs accrued from July to December 2024.

The utility company contends that this amount is pending due to factors like partial load, open cycle, degradation curves, and startup costs. KE has urged the authority to approve the adjustment to avoid future burdens on consumers.