K-Electric agrees to pay billions in refunds – How much relief will Karachi’s citizens get?

Karachi’s power utility, K-Electric, has submitted a petition to the National Electric Power Regulatory Authority (NEPRA) seeking approval to refund excess recoveries to its consumers.

According to a report by ARY News on Saturday, the company acknowledged collecting billions of rupees in additional recoveries from electricity consumers in Karachi. According to the petition, consumers could receive a relief of Rs. 4.98 per unit.

National Electronic Power Regulatory Authority (NEPRA) has scheduled a hearing on K-Electric’s plea for January 15. During the hearing, the regulatory authority will determine the final refund amount for consumers.

In November, NEPRA approved a 40 paisa per unit tariff increase for K-Electric consumers as part of the monthly adjustment for August 2024. This hike will reflect in January 2025 bills.

Additionally, consumers paid Rs. 3.17 per unit in November bills under the June adjustment and Rs. 3.03 per unit in December bills for the July 2024 adjustment. While K-Electric initially requested a 51 paisa per unit increase for August, NEPRA approved a lower increase of 40 paisa per unit and issued a notification for the hike.