KARACHI: K-Electric, the power utility serving Pakistan’s largest city, has announced a significant increase in electricity rates for its consumers. Starting in November, consumers will face an adjustment of Rs. 2.17 per unit, adding to the existing price of Rs. 3.17 per unit, making the total price Rs. 4.91 per unit.
Additionally, a quarterly adjustment of Rs. 1.74 per unit will be charged separately, as part of the quarterly tariff adjustment mechanism. This mechanism aims to pass on fuel price variations to consumers.
This increase comes on the heels of a previous hike of Rs. 2.59 per unit for October, which had already burdened consumers.
K-Electric has also requested a further increase of Rs. 51 paise per unit for August, pending approval. Last month, the National Electric Power Regulatory Authority (NEPRA) approved K-Electric’s petition for provisional monthly fuel charge adjustments (FCA) for July 2024, at PKR 3.03 per unit. This amount will be reflected in customer bills in December 2024.
Fuel charge adjustments are made to account for global variations in fuel prices used to generate electricity and changes in the generation mix.
These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Conversely, customers benefit from reduced FCAs when global fuel prices decrease.
The rates charged to customers are determined by NEPRA and notified by the Federal Government. According to the Regulatory Authority’s decision, the FCA will apply to all consumer categories, except Electric Vehicle Charging Stations, lifeline consumers, and prepaid metering consumers.
