K-Electric to hike bills by Re0.4 per unit in January

• K-Electric to collect Rs795 million with GST.
• Refund of Re0.16 per unit proposed for September FCA.
• The utility had sought Re0.51 per unit collection.
  

ISLAMABAD: Karachi’s electricity consumers will see an extra charge of Re0.4013 per unit in January 2025 bills, as the National Electric Power Regulatory Authority (Nepra) approved K-Electric’s fuel charges adjustment (FCA) for August 2024 on Tuesday, The News reported.

This adjustment will enable the utility to collect Rs674 million in one month, with an 18% GST bringing the total to Rs795 million. The charge applies to all consumer categories except Electric Vehicle Charging Stations (EVCS), lifeline consumers, and prepaid metering users.

The utility had sought Re0.51 per unit collection. However, the authority, after holding a public hearing on October 3 and analysing the data submitted by the petitioner, allowed Re0.4013 per unit under FCA mechanism, based on interim reference tariff set in March 2023.

K-Electric was allowed to charge additional Rs3.0362 per unit in the month of December bills. It has an impact of Rs6.105 billion. 

The regulator earlier granted K-Electric an extra collection of Rs2.5934 per unit in October and Rs3.1688 in November bills. These increases are on account of May and June 2024 FCAs.

Recently, the Karachi-based power utility has filed a petition with Nepra saying it is willing to refund Re0.16 per unit to consumers as part of monthly fuel charge adjustments (FCA) for September 2024, totalling approximately Rs247 million. 

This is the first time after an extended period that the K-Electric is ready to refund consumers.