K-Electric moves Nepra for Rs 5.45 per unit power tariff hike under FCA

• KE forecasts Rs 2.53 per unit increase for May, Rs 2.92 for June.
• Consumers will bear an additional burden of Rs 10 billion.
• Nepra to hear K-Electric’s plea on July 30.
  

ISLAMABAD: Karachi’s sole power provider K-Electric on Saturday moved the apex energy regulator to approve an increase of Rs 5.45 per unit in electricity tariff under the fuel cost adjustment (FCA) mechanism for May and in June.

If approved by the National Electricity Regulatory Authority (Nepra), this hike will drastically add to the financial strain of consumers who are struggling with runaway inflation amid shrinking incomes.

Citing increased fuel costs, the utility has asked Nepra to approve a tariff hike of Rs 2.53 per unit for May and Rs 2.92 per unit for June. In case the authority grants this request at its hearing on July 30, consumers will face an additional burden of Rs 10 billion.

The demand follows the government’s recent increase in the basic tariff for domestic consumers by up to Rs 48.84 per unit earlier this week, following the hike in petroleum levy and new tax on agricultural income.

The increase in electricity rates, according to the notification issued by the Power Department, will also include users in Karachi. However, it will not apply to consumers using up to 200 units per month, who have been exempted from the increase for three months.

The energy regulator issued its decision approving the federal government’s request for increases in electricity tariffs for residential, commercial, general service, bulk and rural consumers.

Prior to this, on July 5, Nepra had approved Rs 3.3287 per unit increase in electricity price for May 2024 on account of monthly FCA. However, this increase was not for K-Electric consumers.

Meanwhile, the federal cabinet also approved hike in basic tariff by Rs 8.04 for commercial consumers, Rs 6.62 for rural consumers, Rs 6.96 for general services and Rs 5.96 for consumers in bulk.

After the hike, the basic tariff for rural consumers has gone up to Rs 46.83 per unit, while for general services it has gone up to Rs 61.03 per unit, sources told the publication.

After a hike of Rs 5.51 per unit, bulk consumers will pay Rs 59.96 per unit from July. However, the cabinet decided to maintain the basic tariff for industrial consumers.