ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has announced an 18-paisa per unit reduction in electricity tariffs for K-Electric consumers under the monthly fuel cost adjustment (FCA) for September. The reduction, which will reflect in December bills, excludes lifeline consumers, electric vehicle charging stations, and households using up to 300 units per month.
This tariff decrease is in line with NEPRA’s FCA mechanism, which adjusts rates based on fluctuations in fuel costs. However, the tariff reduction comes amid the backdrop of K-Electric’s proposal to increase its multi-year tariff from Rs3 to Rs6 per unit. If approved, this would raise the average electricity price for K-Electric consumers to Rs47 per unit.
A public hearing on the proposed tariff hike is scheduled for this week, after which NEPRA is expected to finalize the adjustment. The Saudi shareholder of K-Electric has raised the matter with the Special Investment Facilitation Council (SIFC) and informed Prime Minister Shehbaz Sharif, as well as Federal Finance Minister Muhammad Aurangzeb.
Read More: NEPRA Approves 40 Paisa Per Unit Electricity Price Hike for Karachi
The proposed tariff increase could attract foreign investment, but may widen the tariff gap between K-Electric and other distribution companies (DISCOs) by up to Rs12 per unit. This is expected to put additional pressure on government subsidies and public funds.
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