National Electric Power Regulatory Authority (NEPRA) documents showed that K-Electric’s poor strategy and violation of the merit order have resulted in higher electricity costs for consumers.

According to the documents, in December, KE opted to purchase costly electricity from independent power producers (IPPs) instead of sourcing cheaper power from the national grid (NTDC).

The cost of electricity generated from KE’s own captive power plants and IPPs was more than double that of the national grid supply.

KE’s power generation from its plants and IPPs cost Rs18.63 per unit, whereas electricity from the national grid was available at Rs9.60 per unit.

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Despite receiving 1,600 MW from NTDC in December, KE utilized only 985 MW, while the rest of the power demand was met through expensive sources.

NEPRA’s report highlights that KE’s decision to generate electricity from costlier sources, in violation of the merit order, directly impacted consumers.

Additionally, KE’s choice to procure expensive RLNG further escalated electricity prices.