K-Electric proposes significant tariff increase for Karachi residents

K-Electric, the power utility serving Karachi, has formally requested the National Electric Power Regulatory Authority (NEPRA) to consider a significant increase in the multi-year tariff for consumers in the city. The proposal put forth by K-Electric involves a substantial Rs10 per unit rise in electricity rates over a seven-year period. This move, if approved, would result in a notable increase in the cost of electricity for Karachi residents, from the current Rs34 per unit to Rs44.7 per unit.

During the hearing conducted by NEPRA, K-Electric officials presented their case, emphasizing the need to recover working capital costs through the proposed tariff adjustment. The application also includes provisions for sharing revenue from certain activities and suggests an annual tariff adjustment mechanism linked to fluctuations in the dollar exchange rate.

Furthermore, K-Electric highlighted improvements in the city's transmission and distribution infrastructure, indicating a potential need for additional adjustments in the future. However, concerns were raised by consumers regarding the extended duration of the proposed seven-year tariff, as it deviates from the standard four-year tariff structure. Questions were also raised about the feasibility of maintaining commitments over such a prolonged period.

The request by K-Electric for a substantial increase in the multi-year tariff has sparked discussions among stakeholders, with consumers expressing reservations about the proposed changes. As the regulatory process unfolds, it remains to be seen how NEPRA will address the concerns raised during the hearing and whether the proposed tariff adjustments will be approved in their current form.