K-Electric seeks Rs4.95/unit tariff cut

Electricity consumers in Karachi are set to enjoy relief as K-Electric (KE) has sought a Rs4.95 per unit reduction in power tariffs for December 2024 due to fuel charges adjustment. The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on February 26 to consider KE's request for a negative fuel charges adjustment (FCA), according to industry sources. According to KE's petition, the adjustment is based on the interim reference tariff of March 2023, resulting in a total reduction of Rs4.94 billion in fuel costs. In addition to the FCA adjustment, KE has requested NEPRA to consider an additional adjustment of Rs5 billion for fuel costs incurred from July to December 2024. The power utility argues that the amount is pending due to partial load, open cycle, degradation curves and startup costs. It has urged the authority to allow the adjustment to prevent a future burden on consumers. As per details, NEPRA has framed three key questions for deliberation during the hearing, including whether the requested FCA is justified and whether KE has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources. It will further deliberate over whether the request of KE to consider adjustment of accumulated actualisation of fuel cost on account of partial load, open cycle and degradation curves along with startup cost from July to December 2024, from the negative fuel cost variation is justified.

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