Karachi’s consumers may soon see a reduction in electricity prices following a request by K-Electric to the National Electric Power Regulatory Authority (NEPRA) for an adjustment in fuel costs.
K-Electric has requested a reduction of Rs 4.98 per unit for the month of November, Express News reported.
During a hearing, NEPRA member Maqsood Anwar noted that K-Electric is heavily dependent on the National Transmission and Despatch Company (NTDC) for its power supply, suggesting that perhaps K-Electric should have a generation licence.
K-Electric representatives explained that the company’s power plants receive capacity payments between Rs6 to 7 per unit.
The demand for electricity has increased by 13% annually and residential consumption has increased significantly.
Another NEPRA member, Rafique Sheikh, questioned K-Electric’s growth forecasts over the next five to six years, especially given the increasing role of solar and other sources.
K-Electric officials responded that growth is likely to increase once captive plants are relocated.
K-Electric officials also gave a breakdown of the company’s power sources in November.
They explained that 62% of the power was purchased from NTDC, which provided cheaper power compared to other sources. In addition, 21% came from LNG and 13% from fuel oil.
Compared to October, K-Electric’s average demand in November was 2,300 MW, representing a 12% decrease from October’s demand of 2,600 MW.
After the public hearing, NEPRA confirmed that K-Electric’s request for a reduction of Rs4.98 per unit under the Fuel Cost Adjustment (FCA) for November is under review.
Last month, K-Electric had a reduction of Rs0.49 per entity in its FCA for October.
The reduction, if approved, will apply to all K-Electric consumers, except lifeline users, those consuming less than 300 units per month, prepaid customers, agricultural users and electric vehicle charging stations.
NEPRA will release its detailed decision after further analysis of the data.
