Welcome development: Electricity tariff slashed by Rs4.87 per unit

In what is good news for power consumers, the National Electric Power Regulatory Authority (Nepra) Thursday approved the electricity tariff to be slashed by Rs4.87 per unit for the month of August 2022 on account of fuel charge adjustment (FCA).

At a public hearing on KE’s fuel adjustment, Nepra said that the tariff reduction will give the people of Karachi relief worth Rs7.21 billion.

It was also clarified that the reduction in power tariff is not applicable for lifeline customers of KE.

However, a detailed decision regarding this is expected to be issued by Nepra shortly.

What happened during the hearing?

A Nepra official asked about the measures taken by KE to reduce the production cost of electricity as the cost of KE’s own power generation is Rs38 per unit and the cost of electricity purchased by KE is Rs13.61 per unit.

KE officials told the Nepra chairman that production costs increased due to a shortage of natural gas, with a tiff between payments between KE and Sui Southern Gas Company (SSGC) continuing for much of last month, which is why LNG is also being produced.

Earlier on September 9, Nepra had approved K-Electric’s request to reduce tariffs by Rs4.11 per unit for residents of Karachi, following the FCA for July 2022.