The National Electric Power Regulatory Authority (Nepra) has sanctioned an increase of Rs1.55 per unit for KE consumers due to the quarterly fuel charges adjustment (FCA) from July to September 2022.
Residents of Karachi will face an additional charge of Rs1.5547 per unit for the upcoming three months from May to July 2023, corresponding to the electricity consumption during July, August, and September of the previous year.
The regulator’s verdict, accompanied by the tariff schedule (SoT), dictates that all categories of power consumers, such as residential, commercial, time of use (ToU) consumers, electric vehicle charging stations (EVCS), general services, industrial sector, single point supply, agriculture tube wells, streetlights, and residential colonies linked to industrial facilities, will face an additional charge of Rs1.5547 per unit over the next three months.
Nonetheless, lifeline consumers who use less than 100 units per month will not bear this additional cost.
Nepra’s decision followed the federal government’s proposal regarding suggesting a consumer-end tariff for KE.
Typically, the government maintains a uniform tariff across the nation, and any disparity is usually balanced through subsidies.
Therefore, the Ministry of Energy has requested the application of quarterly adjustments on KE consumers, similar to those applicable for XWDISCOs.
The federal government presented a motion to Nepra under sections 7 & 31 of the Nepra Act, 1997, in conjunction with rule 17 of Nepra Tariff (Standards and Procedure) Rules, 1998, for the application of Quarterly Adjustment on KE consumers, as is done for XWDISCOs.
On April 3, 2023, the power regulator conducted a public hearing regarding the federal government’s proposal concerning the consumer-end tariff recommendations of the KE to modify the tariff under the Uniform Tariff Policy.
The ministry disclosed that the federal government is providing a subsidy of approximately Rs150 billion to KE for the ongoing year.