Consumers in Karachi may soon see a reduction in electricity tariffs following a request by K-Electric to the National Electric Power Regulatory Authority (NEPRA) for a fuel cost adjustment.
K-Electric has requested a reduction of Rs 4.98 per unit for the month of November, Express News reported.
During a hearing, NEPRA member Maqsood Anwar commented that K-Electric is heavily dependent on the National Transmission and Dispatch Company (NTDC) for its power supply, suggesting that perhaps K-Electric should be given a generation license .
K-Electric representatives explained that the company’s power plants receive capacity payments of between Rs 6 and Rs 7 per unit.
Electricity demand has increased by 13% annually, with residential consumption experiencing a notable increase.
Another NEPRA member, Rafique Sheikh, questioned K-Electric’s growth projections over the next five to six years, especially considering the increasing role of solar energy and other sources.
K-Electric officials responded that growth would likely increase once the captive plants are moved.
K-Electric officials also provided a breakdown of the company’s electricity sources in November.
They explained that 62% of the electricity was purchased from NTDC, which provided cheaper electricity compared to other sources. Additionally, 21% came from LNG and 13% from furnace oil.
Compared to October, K-Electric’s average demand in November was 2,300 MW, representing a 12% decrease from October’s demand of 2,600 MW.
Following the public hearing, NEPRA confirmed that K-Electric’s request for a reduction of Rs 4.98 per unit under the Fuel Cost Adjustment (FCA) for November is being reviewed.
Last month, K-Electric saw a reduction of Rs 0.49 per unit in its October FCA.
The reduction, if approved, will apply to all K-Electric consumers except Lifeline users, those consuming less than 300 units per month, prepaid customers, agricultural users and electric vehicle charging stations.
NEPRA will publish its detailed decision after further analysis of the data.
