K Electric Seeks Rs5.02 Per Unit Relief from NEPRA

K-Electric has requested a tariff relief of Rs5.02 per unit under the monthly Fuel Charges Adjustment for March 2025, which could result in a total relief of Rs6.79 billion for its consumers, pending NEPRA's approval.

The relief, if approved, will not be applicable to lifeline consumers, protected domestic consumers, electric vehicle charging stations, and those using prepaid metering systems. K-Electric has also requested adjustments for part load, degradation curves, and startup costs, which could be recovered from negative fuel cost variation. The company's CEO, Moonis Alvi, highlighted the utility's efforts to tackle power theft and requested NEPRA to urge citizens to refrain from electricity theft and pay their bills.

NEPRA has sought a month-wise breakdown of KE's generation cost claim of Rs14 billion and asked for detailed documentation under the partial cost adjustment categories. The regulator also raised questions about KE's furnace oil stock valuing at Rs5 billion for the Bin Qasim Power Station-I. KE officials assured that the required breakdown would be provided, and the fuel stock was maintained in accordance with regulatory requirements.

Meanwhile, Jamaat-e-Islami has intensified its protests against K-Electric, condemning the company's "anti-Karachi policies, corrupt practices, exorbitant tariffs, and unending power outages." The party has reiterated its demand for Karachi's connection to the national grid, which it believes is crucial for ensuring affordable and reliable electricity.

A final decision on the relief amount and its implementation in consumer bills will be announced later by NEPRA. The outcome of the public hearing and the regulator's decision will be crucial in determining the future of K-Electric's tariff structure and its impact on consumers.