As electricity prices are expected to reduce following the revised IPP agreements, consumers in Karachi are also likely to see a decline in unit electricity rates.
The National Electric Power Regulatory Authority (NEPRA) held a hearing on KE Electric’s monthly fuel adjustment request for November. The company had requested a reduction of Rs 4.98 per unit.
During the hearing, NEPRA member Maqsood Anwar commented that KE Electric’s heavy dependence on the NTDC (National Transmission and Dispatch Company) raises the question of whether KE Electric should be granted a generation licence.
Officials representing KE Electric stated that the company’s power plants have a capacity payment of Rs 6 to Rs 7 per unit, and electricity demand has increased by 13% annually, with demand from the domestic sector increasing significantly. .
Rafiq Sheikh, member of NEPRA, asked about the projected growth for the next 5-6 years, considering solar energy and other alternative energy sources. In response, KE Electric officials mentioned that the shift to captive plants would contribute to further growth.
During the hearing, KE Electric officials reported that in November they bought 62% of their electricity from NTDC, which was comparatively cheaper. The remaining energy was generated from LNG (21%) and furnace oil (13%).
The average demand in November was 2,300 MW, lower than the 2,600 MW in October, which represents a 12% reduction in electricity demand compared to October.
Compared to the same period last year, demand has increased, with demand in November of the previous year being 2,000 MW.
Following the public hearing on KE Electric’s monthly fuel tariff adjustment, NEPRA confirmed that the company had requested a reduction of Rs 4.98 per unit. This followed a previous adjustment in October, where a reduction of Rs 0.49 per unit was implemented.
According to KE Electric officials, the November fuel load adjustment will be Rs 4.49 less per unit compared to October. This reduction will apply to all KE Electric customers except Lifeline consumers, those using up to 300 units per month, prepaid users, agricultural customers and electric vehicle charging stations.
NEPRA will issue a detailed decision after further reviewing the data.
