A significant reduction in electricity tariffs for Karachi consumers may soon be on the horizon, as a public hearing at NEPRA Headquarters concluded on the matter.
K-Electric submitted a request for a Rs6.62 per unit reduction in electricity rates under the Fuel Charges Adjustment (FCA) mechanism. The proposal also included approval of fuel cost charges incurred from July 2023 to February 2025.
K-Electric officials argued that a fuel cost adjustment amounting to Rs13.9 billion is still pending.
NEPRA Member Rafiq Ahmed Sheikh pointed out that since November, negative fuel charge adjustments have been observed, indicating that consumers were supposed to receive relief. However, he noted that K-Electric brought forward older adjustments during this period of expected relief.
A consumer representative expressed concern that the full benefit of the negative FCA has once again not been passed on to the consumers.
Sheikh further remarked that if K-Electric fails to replace malfunctioning meters, the company itself will bear the losses.
If the proposal is approved in full, it would result in a substantial relief of Rs6.6 billion for consumers. The reduction, however, will not apply to lifeline consumers, protected consumers, pre-paid meter users, and electric vehicle charging stations.
