K-Electric Seeks Additional Increase in Pending Tariff Request

Karachi’s power utility K-Electric has submitted a claim for Fuel Price Adjustment (FPA) for April 2024 to the National Electric Power Regulatory Authority (NEPRA). KE has suggested three options; either decreasing FPA by Rs. 0.74 to Rs. 1.18 per unit in two cases or adding Rs. 0.44 per unit to an already gigantic request of Rs. 18.6 per unit increase for July-March. The distributor is seeking recovery of around Rs. 26 billion on a provisional basis under these options to clear its backlog. NEPRA will hold a public hearing on the matter later this month. In summary: While the decision on this is pending till the public hearing, NEPRA has already notified an additional Rs. 1.90 per unit charge for June, followed by Rs. 0.93 each in July and August in quarterly tariff adjustments. These rates apply to all consumer categories, except for those using less than 100 units per month, and fall under the protected lifeline category. NEPRA has allowed positive quarterly adjustments of Rs. 46.6 billion for the third quarter of FY24, applicable from June to August. Notifications have been sent to all DISCOs including KE.