An energy expert associated with the Korangi Association of Trade & Industry (KATI) has categorically stated that K-Electric’s Multi-Year Tariff will not reduce the electricity bills for Karachi’s residents.
The MYT for KE was recently revisited by NEPRA and announced on Monday night.
Rehan, an industrialist who has closely followed and taken part in NEPRA hearings, clarified that the decision will not impact customers’ electricity bills. In fact, he added, customers will also have to bear an additional cost as the regulator has reversed the fuel charges adjustment retrospectively for FY24.
This effectively means that customers will bear an additional per-unit cost of Rs1.64 for consumption in FY24.
“As per the decision, K-Electric will have to recover from consumers the negative FCA (Fuel Charge Adjustment) that was given to them last year,” he added.
“According to this decision, K-Electric’s consumers will have to pay an additional amount of Rs. 30 to 40 billion under FCA for the fiscal years 2023 and 2024,” said Rehan Javed.
NEPRA reduced KE tariff from Rs39.70 to Rs32.37. KE’s profit is also projected to come down from Rs4 billion for 2025 to a loss of roughly Rs90 billion.
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