The National Electric Power Regulatory Authority (NEPRA) has completed the hearing on K-Electric’s request for a reduction of Rs4.84 per unit in electricity prices under the fuel price adjustment mechanism.

The authority has reserved its decision, which, if approved, will provide Karachi consumers with a relief of Rs4.69 billion.

During the hearing, K-Electric officials informed NEPRA that the drop in electricity prices was due to purchases from NTDC (National Transmission and Dispatch Company) and CPPA (Central Power Purchasing Agency), while no electricity was generated using furnace oil last month.

The company also revealed that electricity consumption in Karachi has declined by 8% due to consumers limiting their power usage amid high costs.

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NEPRA member Rafiq Ahmed Sheikh questioned the reason behind the 8% decline in annual electricity growth. K-Electric officials attributed this to lower temperatures, economic challenges affecting industrial power consumption, and the increasing use of solar panels.

NEPRA directed K-Electric to submit a detailed report within a week explaining the decline in electricity consumption. The authority also asked all power distribution companies (DISCOs) to provide details on interest payments on net metering consumers’ funds.

Following the completion of the public hearing, NEPRA reserved its decision, which will be announced later.

K-Electric had filed the request for a Rs 4.84 per unit reduction for January’s fuel adjustment charges, which, once approved, will grant a significant financial reprieve to Karachi’s electricity consumers.

On March 13, after submitting the application to NEPRA, K-Electric’s spokesperson stated that this would be the fifth consecutive time that fuel charge adjustments (FCA) have benefitted consumers.

The spokesperson further explained that any reduction in global fuel prices is passed on to consumers after NEPRA’s due diligence and approval.