KARACHI: K-Electric has submit an application to the National Electric Power Regulatory Authority (NEPRA) requesting an increase of Rs2.34 in the power tariff. The K-Electric attributes this increase to the monthly Fuel Charges Adjustment (FCA) for the month of June.
The power utility of Karachi, K-Electric, has submit a request to NEPRA to raise the power tariff for consumers in Karachi by Rs2.34 per unit. The National Electric Power Regulatory Authority (NEPRA) will hold a hearing on the application on July 26. If the plea is approve. It will result in an additional financial burden of Rs4.39 billion for consumers in Karachi.
However, the previous week, the National Electric Power Regulatory Authority (NEPRA) raised the base power tariff by Rs 4.96 per unit for the fiscal year 2023-24. The authority has forwarded its decision on the proposed tariff increase to the federal government for final approval.
If approves, the base tariff for electricity will be raised from Rs24.82 per unit to Rs29.78 per unit. The NEPRA spokesperson mention that the federal cabinet will determine whether or not the tariff hike will be implemented in phases.
K-Electric Yet To Pay Rs350bn To CPPA
While addressing the Senate Committee, Moonis Alvi, CEO of K-Electric (KE), said that the company presently gets 1000 MW of electricity from the national grid.
The Senate Committee questioned at what rate KE purchases electricity from the national grid. The CPPA officials replied that KE is paying the same price because the basket rate of electricity is fixed for all DISCOs.
The Committee raised questions about the details of the K Electric contract. Additionally, ‘the circular debt has not been resolved as yet’. Senator Fida Muhammad claimed that K Electric’s contract with National Grid expired in 2015. Although eight years have been gone, the contract was unable to be renewed, to which the Ministry had no concrete answer.
Moonis Alvi mentioned that a draft interconnection agreement was started on November 10, 2021. Alvi made this statement during a briefing on the status of the power purchase agreement between K-Electric and CPPA.
