As electricity prices are expected to come down after the revised IPP agreements, consumers in Karachi are also likely to see a drop in electricity prices per month. unit.

The National Electric Power Regulatory Authority (NEPRA) held a hearing regarding KE Electric’s monthly fuel adjustment request for November. The company had requested a reduction of Rs 4.98 per unit.

During the hearing, NEPRA member Maqsood Anwar noted that KE Electric’s heavy dependence on NTDC (National Transmission and Dispatch Company) raises the question of whether KE Electric itself should be granted a manufacturing licence.

Officials representing KE Electric stated that the company’s power plants have a capacity payment of Rs 6-7 per mt.

NEPRA member Rafiq Sheikh asked about expected growth over the next 5-6 years considering solar and other alternative energy sources. In response, KE Electric officials mentioned that switching to captive plants would contribute to increased growth.

During the hearing, KE Electric officials gave a briefing revealing that in November they purchased 62% of their electricity from NTDC, which was comparatively cheaper. The remaining power was generated from LNG (21%) and heating oil (13%).

Average demand in November was 2300 MW, lower than the 2600 MW in October, marking a 12% reduction in electricity demand from October.

Compared to the same period last year, demand has increased, with the previous year’s November demand at 2000 MW.

After the public hearing on KE Electric’s monthly fuel duty adjustment, NEPRA confirmed that the company had requested a reduction of Rs 4.98 per unit. This followed an earlier adjustment in October where a reduction of Rs 0.49 per device was implemented.

According to KE Electric officials, the fuel tax adjustment in November will be Rs 4.49 less per unit compared to October. This reduction will apply to all KE Electric customers, except lifeline consumers, those using up to 300 units per month, prepaid users, agricultural customers and EV charging stations.

NEPRA will issue a detailed decision after further review of the data.