Good News: NEPRA approves reduction in K-Electric’s tariff by Rs5.12 per unit

• The change will be reflected in November bills.
• This will also apply for only one month.
• Rs5.12 decrease will have an impact of over Rs8.6 billion.

ISLAMABAD: In a major relief for Karachiites, the National Electric Power Regulatory Authority (NEPRA) Friday notified a reduction in K-Electric’s tariff on account of fuel charges adjustment (FCA) for September.

The power regulator notified that a Rs5.1261 per kWh adjustment should be reflected in November bills under the FCA — a system by which the price of electricity is adjusted as fuel prices fluctuate. This will also apply for only one month.

The hearing of KE's fuel adjustment application in NEPRA was held on October 25 where the KE had requested a negative FCA of Rs4.622 per kWh.

However, following the arguments and estimates the power regulator approved a negative FCA of Rs5.1261 per kWh.

In a statement, the NEPRA directed all KE to show the adjustment separately in the consumer’s bills for November.

This shall apply to all consumer categories except:

• Lifelines consumers
• Domestic consumers who consume up-to 300 units
• Agriculture consumers
• Electric vehicle charging stations

It was also clarified that the negative adjustment on account of monthly FCA applies to domestic consumers having Time of Use (ToU) metres irrespective of their consumption level.

The Rs5.12 decrease will have an impact of over Rs8.6 billion on consumers, including GST.

“While effecting the fuel adjustment charges, the concerned K-Electric shall keep in view and strictly comply with the orders of the courts notwithstanding this order,” the notification issued in this regard read.

Earlier this week, the power regulator had indicated an increase in the electricity tariff of the ex-Wapda distribution companies XWDISCOs by Rs0.08 per unit on account of FCA for September 2022.

The Rs0.08 increase will put a burden of over Rs1 billion on consumers, including GST.