Karachi residents to see Re0.18 per unit relief in electricity bills

The National Electric Power Regulatory Authority (Nepra) has announced an Re0.18 per unit reduction in electricity prices for Karachi consumers under the September 2024 monthly adjustment, The News reported.

The reduction will be reflected in electricity bills issued for December 2024.

However, this adjustment will not apply to consumers using up to 300 units per month, according to Nepra's notification.

According to The News, K-Electric submitted a petition to Nepra in October, proposing a refund of Re0.16 per unit to consumers as part of the September 2024 Fuel Charge Adjustments (FCA).

This refund, totaling approximately Rs247 million, marks a rare instance where the utility is willing to offer relief to consumers.

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

In its petition, K-Electric argued that the refund aligns with Nepra's previous rulings on provisional monthly fuel cost adjustments for July 2023–June 2024.

The company had highlighted that provisional FCAs were authorised based on parameters outlined in the Multi-Year Tariff (MYT) for 2017-2023, and adjustments may be implemented once the MYT for 2024-2030 is finalised.

The FCA for September 2024 were calculated using the interim tariff established in March 2023 as the reference point.

K-Electric’s submission included detailed calculations and supporting documentation for Nepra’s evaluation and approval.

While the current refund is notable, Karachi consumers face other adjustments from previous months.

For December 2024 bills, K-Electric was permitted to collect an additional Rs3.0362 per unit, impacting consumers by Rs6.105 billion.

In October and November, the regulator approved collections of Rs2.5934 and Rs3.1688 per unit, respectively, based on May and June 2024 FCAs.

In contrast, K-Electric’s FCA for August 2024 added a charge of Rs0.4013 per unit in January 2025 bills.

This adjustment allowed the utility to collect Rs674 million in one month, with an 18% GST pushing the total to Rs795 million.

The charge excludes lifeline consumers, electric vehicle charging stations, and prepaid metering users.

The proposed refund marks the first time in an extended period that K-Electric is offering a refund to its customers.