Wednesday May 22, 2024

Power tariff for Karachiites cut by Rs2.45 per unit

NEPRA okays reduction for KE consumers on account of fuel cost adjustment

By Saifur Rahman
December 14, 2022
A file photo of electrical grids. —AFP
A file photo of electrical grids. —AFP

ISLAMABAD: As a relief for the inflation-weary people, the power tariff for K-Electric (KE) consumers was cut down Wednesday by the National Electric Power Regulatory Authority (NEPRA).

The regularity authority approved a reduction of Rs2.45 per unit for KE consumers on account of fuel cost adjustment (FCA) for electricity consumed in October.

Changes in rates will be reflected in the bills for December.

NEPRA released a notification for adjustment in electricity rates of KE, mentioning that the negative FCA — a system by which the price of electricity is adjusted as fuel prices fluctuate — would be applicable to all consumer categories except:

  • Lifeline consumers
  • Domestic consumers using up to 300 units
  • Agriculture consumers
  • Electric vehicle charging stations

“The negative FCA should be shown separately in the consumer's bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains,” the notification read.

It was also clarified that negative adjustment on account of month FCA will also be applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

The hearing of KE's fuel adjustment application in NEPRA was held on November 30 where the KE had requested a negative FCA of Rs1.88 per kWh.

However, following the arguments and estimates, the power regulator approved a negative FCA of Rs2.4536 per unit.