K-Electric, the primary electricity provider for Karachi, has submitted a request to the National Electric Power Regulatory Authority (NEPRA) for an increase in electricity tariffs. The request seeks adjustments to the Fuel Charge Adjustment (FCA) component of the bill, citing fluctuations in fuel prices over the past seven months.

K-Electric’s proposal outlines an Rs18.86 per unit increase for seven months, spanning from July 2023 to March 2024. However, the request also includes a minor decrease of 29 paise per unit for two months within this period. After accounting for the decrease, the net impact would result in an overall increase of Rs18.57 per unit for consumers.

The justification for the requested increase lies in the rising cost of fuel used for electricity generation. K-Electric argues that the Multi-Year Tariff, which was supposed to be approved in June 2023, is still pending, leaving them exposed to fluctuating fuel costs.

NEPRA is scheduled to hold a hearing on May 9th to review K-Electric’s request and determine the validity of the proposed tariff adjustments.

Key Points of the Request:

• Increase Sought: Rs18.86 per unit for 7 months (July 2023 - March 2024)
• Decrease Sought: 29 paise per unit for 2 months within the above period
• Net Increase: Rs18.57 per unit
• Justification: Fluctuating fuel costs and pending Multi-Year Tariff approval
• NEPRA Hearing: May 9th