NEPRA to review KE’s request for electricity price reduction

Karachi electricity consumers may experience lower bills as KE has petitioned for a 0.27 paisa per unit reduction in electricity prices.

According to a report by Express Tribune on Thursday, the request, submitted to the National Electric Power Regulatory Authority (NEPRA), pertains to the month of October under the monthly fuel adjustment mechanism, according to Express News.

NEPRA is set to review KE’s request today, with the potential price reduction offering over Rs 460 million in relief for consumers. A NEPRA official confirmed that the regulatory body will also evaluate KE’s adherence to the merit order in its operations and has requested a report from KE on this issue.

If approved, the tariff cut would ease the financial burden on Karachi’s electricity users, who have been grappling with higher costs due to rising energy prices.

Meanwhile, Energy Minister Awais Ahmed Khan Leghari announced last week that, after revising agreements with Independent Power Producers (IPPs), electricity prices in the country are expected to drop by up to Rs5 per unit, as reported by Express News.

At a briefing on the electricity facilitation package at the FPCCI office in Islamabad, Leghari acknowledged the important role of the business community in driving the country’s economy.

“As an agriculturist, I must point out that we are now subjected to a 45% tax. Pakistan has never had a formula for affordable electricity,” he stated. “We’ve already purchased 7,000 megawatts out of the 17,000 megawatts we need,” he added.

Leghari noted that of the 17,000 megawatts, 87 megawatts did not meet the criteria for affordable electricity, adding, “There are no sacred cows in the power sector anymore.”