K-Electric seeks NEPRA approval for Rs5.45 per unit tariff hike following petrol price surge

Karachi’s power provider, K-Electric, has submitted a request to the National Electric Power Regulatory Authority (NEPRA) seeking approval for a Rs5.45 per unit increase in electricity tariffs under the Fuel Cost Adjustment (FCA) mechanism for May and June.

If NEPRA approves this request, it will significantly intensify the financial burden on consumers already struggling with high inflation and declining incomes. Citing rising fuel costs, K-Electric has requested a tariff increase of Rs2.53 per unit for May and Rs2.92 per unit for June.

This proposed hike, if sanctioned during NEPRA’s hearing on 30th July, would impose an additional Rs10 billion burden on consumers.

This request follows the government’s recent decision to raise the base tariff for domestic consumers by up to Rs48.84 per unit, coupled with increases in the petroleum levy and new taxes on agricultural income.

According to a Power Division notification, the hike in electricity prices will also affect Karachi consumers. However, those consuming up to 200 units per month will be exempt from the increase for three months.

NEPRA recently approved the federal government’s application to raise electricity tariffs for domestic, commercial, general services, bulk, and agricultural consumers.

On 5th July, NEPRA had sanctioned an Rs3.3287 per unit increase in electricity prices for May 2024 due to the monthly FCA, although this did not apply to K-Electric consumers.

Additionally, the federal cabinet has approved increases in the base tariff by Rs8.04 for commercial consumers, Rs6.62 for agricultural consumers, Rs6.96 for general services, and Rs5.96 for bulk consumers.

As a result, the base tariff has risen to Rs46.83 per unit for agricultural consumers and Rs61.03 per unit for general services. Bulk consumers will now pay Rs59.96 per unit following an increase of Rs5.51 per unit. The base tariff for industrial consumers remains unchanged.