Under the fuel cost adjustment for December 2021, K-Electric plans to cut electricity tariffs by Rs. 2.59 per unit.
The National Electric Power Regulatory Authority (NEPRA) held a hearing on K-Electric’s request to cut electricity tariffs for Karachi residents. Chairman NEPRA Tauseef H. Farooqi presided over the hearing on the plea.
The power utility firm has requested that the power regulator reduce energy costs by Rs. 1.80 per unit under fuel adjustment charges for December 2021, according to details.
If NEPRA approves the decision after examining the data provided by the power utility, power consumers in Karachi will receive a total relief of Rs. 2.10 billion.
In its briefing before the hearing, K-Electric stated that electricity use in December was lower than in previous months. According to NEPRA officials, the gas pressure was reduced, and merit order breaches occurred, resulting in a loss of Rs. 108 million.
K-Electric’s proposal for an additional Rs. 0.78 per unit would be added to the fuel costs adjustment (FCA) request for December, according to NEPRA officials.
Instead of the requested Rs. 1.79 per unit, NEPRA officials informed the hearing that a total of Rs. 2.59 per unit would be determined as FCA for K-Electric.
Following the lengthy briefing, the Chairman of NEPRA stated that at the very least, Karachiites will be relieved that the regulator is also providing relief, and that February bills for consumers in Karachi will be significantly lower.
If the FCA is low, this will be excellent news for the people of Karachi, according to Chairman NEPRA.
It’s worth noting that, under the FCA, the NEPRA cut the power tariff for K-Electric customers up to Rs. 0.76 per unit in November 2021.
The reduction, however, will not apply to K-Electric’s lifeline customers. The authorities have reserved its decision and will issue the notification after evaluating the statistics.
To read our blog on “NEPRA approves huge increase in electricity per unit cost for January,” click here.
