Residents of Karachi should brace themselves for what K-Electric describes as “a significant shock,” as the company proposes a substantial increase in power tariffs. K-Electric is seeking a hefty hike of Rs. 18.86 per unit in electricity prices, citing the cumulative rise in tariffs over the past seven months based on monthly fuel adjustments.
K-Electric has applied to Nepra, requesting the tariff increase to be implemented from July 2023 to March 2024. Nepra is scheduled to review K-Electric’s request on May 9.
In its application, K-Electric has proposed implementing the rate adjustment based on the monthly fuel adjustments from the past nine months. This calculation results in a Rs. 18.86 increase in tariffs for the seven months, while it seeks a decrease of 29 paisas for the remaining two months.
The justification for the requested increase lies in the rising cost of fuel used for electricity generation. K-Electric argues that the Multi-Year Tariff, which was supposed to be approved in June 2023, is still pending, leaving them exposed to fluctuating fuel costs.
