The hearing on K-Electric’s proposal to lower electricity rates for Karachi customers by Rs4.95 per unit under the monthly fuel adjustment for December has been concluded by the National Electric Power Regulatory Authority (NEPRA).
Following data assessment, the regulatory body will make its decision public.
During the hearing, K-Electric officials informed NEPRA that there are arrears of Rs5 billion related to partial load, open cycle, and startup costs. They insisted that the current application reimburse this sum.
Customers, meantime, demanded that the public receive the entire benefit of the gasoline adjustment alleviation without any deductions. They also expressed worry over the ongoing load shedding in Karachi’s business districts and the city’s failure to implement the industrial support package.
K-Electric officials provided details on power generation costs, stating that in December, the company generated electricity at Rs18.60 per unit from its own sources. In contrast, K-Electric received power from the Central Power Purchasing Agency (CPPA) for Rs9.60 per unit, indicating a notable pricing disparity.
K-Electric has contested the industrial support package in court, according to NEPRA authorities. They did, however, guarantee that after carefully examining the facts, a final decision about the Rs 4.95 per unit cut will be taken. Customers in Karachi will get a Rs5 billion reduction in their electricity prices if the proposal is accepted.
Whether Karachi residents will receive the much-needed reduction in their electricity prices depends on NEPRA’s decision, which is anticipated to be made soon.
