K-Electric seeks significant electricity tariff hike in Karachi

K-Electric, the primary electricity provider in Karachi, has put forth a request to the National Electric Power Regulatory Authority (Nepra) for a substantial rise in electricity tariffs. If approved, residents in Karachi may experience a notable increase of Rs10.69 per unit, elevating the basic electricity tariff to Rs44.69 per unit, a significant jump from the current average of Rs34 per unit.

The proposal is part of K-Electric's plan for a multi-year tariff structure covering the period from 2023 to 2030. In this plan, the company aims to set the EPP component at Rs18.88 per unit and the CPP component at Rs12.54 per unit. Additionally, K-Electric is looking to incorporate transmission and distribution charges of Rs3.48 per unit each, operation and maintenance costs of Rs0.42 per unit, a retail margin of Rs0.59 per unit, recovery loss allowance of Rs2.88 per unit, and a working capital charge of Rs2.7 per unit.

Nepra has invited feedback from stakeholders regarding K-Electric's petition, allowing a 7-day period for responses. The potential tariff hike, if sanctioned, could have significant repercussions for consumers in Karachi, resulting in increased electricity expenses for residents in the area.

The proposed increase in electricity tariffs by K-Electric could lead to higher costs for consumers in Karachi. It is essential for stakeholders to provide feedback to Nepra during the consultation period to ensure that the interests of the residents are taken into consideration before any decision is made.