The National Electric Power Regulatory Authority (NEPRA) has issued a notification announcing a 20-paise per unit increase in electricity prices.
According to reports, this increase in electricity prices is part of the quarterly adjustment for the first quarter of the current fiscal year. According to the notification, consumers will bear an additional burden of Rs1.18 billion in electricity prices.
NEPRA had previously finalized the July to September quarterly adjustment and sent the decision to the government.
The increase in electricity prices will be applicable for December 2024 only. However, the adjustment will not apply to lifeline and prepaid electricity consumers. Additionally, under the winter package, consumers using extra electricity will also be exempted from this quarterly adjustment.
It is worth noting that the recovery of the last fiscal year’s final quarterly adjustment, which amounted to Rs. 1.74 per unit, concluded in November 2024.
NEPRA on December 10, concluded its hearing on K-Electric’s annual claims of unrecoverable dues against chronic defaulters.
During the hearing, consumers raised multiple grievances on K-Electric’s right-of-claims between FY17 and FY23, highlighting severe challenges faced by Karachi’s residents and businesses.
K-Electric said in a statement that it is allowed to claim these costs in the Multi-Year Tariff awarded to the utility, which is independent of the rates of electricity charged to customers in monthly bills under the uniform tariff policy.
K-Electric elaborated further that the Rs68 billion amount discussed in the hearing has accumulated over a 7-year period which is critical to the company’s continued financial sustainability.
“These amounts have been unrecoverable despite best efforts against defaulters including multiple disconnections, engagement with specialized recovery agencies, and area-specific initiatives,” the statement said.
KE asserted that “the submissions to NEPRA have also undergone strict internal scrutiny as well as external audits by well-accredited and renowned audit firm as required by the NEPRA Authority”.
Speaking on the occasion, Spokesperson K-Electric stated, “Unlike DISCOs, as a private utility KE has no contribution to the national circular debt, a fact that has been recognized by the World Bank and renowned global institutions”.
The spokesperson urged that “disallowing legitimate claims will therefore directly impact KE’s cashflows, affecting our capacity to fulfill plans to drive infrastructural upgrades for enhanced power supply to Karachi.”
K-Electric further said that it will continue to actively engage with the regulator on this matter.
