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Karachi residents could soon see a significant drop in their electricity bills, as K-Electric has requested a 4.98 rupee per unit reduction in electricity prices under the monthly adjustment. With the final decision from the National Electric Power Regulatory Authority (NEPRA) set for tomorrow, the reduction is expected to bring much-needed relief to consumers who have faced rising electricity tariffs in recent years.
If NEPRA approves the proposal, electricity prices in Karachi will be reduced by almost 5 rupees per unit, and consumers will receive a refund of 7.17 billion rupees. K-Electric has requested this refund to return the excess charges it has collected from its customers.
This move comes in the wake of significant tariff increases during the tenure of former Prime Minister Shahbaz Sharif. A recent report by Dawn News highlighted that under Sharif’s leadership, electricity prices saw an unprecedented rise, with a total increase of 25.76 rupees per unit over the last two and a half years. This included a historic 22.53 rupee per unit rise in the basic electricity tariff, along with a permanent surcharge of 3.23 rupees per unit.
The price hikes have led to a considerable financial burden on consumers, totaling over 2 trillion rupees in the past few years. Major tariff increases took place between July 2022 and October 2022, when the basic electricity rate was raised by up to 7.91 rupees per unit. In 2023, another hike of 7.50 rupees per unit was implemented, alongside the imposition of the permanent surcharge. In 2024, electricity prices saw a further increase of 7.12 rupees per unit.
In light of these steep hikes, the government is now working on several strategies to reduce electricity tariffs. One of the proposals under consideration includes revising or terminating agreements with Independent Power Producers (IPPs), which could result in lower prices for consumers. Additionally, the government is reviewing the taxes collected through electricity bills, exploring ways to ease the financial strain on households.
As the final decision on K-Electric’s proposal approaches, many Karachiites are hopeful that this reduction in electricity prices will provide some relief after years of escalating energy costs. The outcome of tomorrow’s hearing will determine whether the price cut becomes a reality, giving consumers a much-needed break from the rising cost of electricity.