K-Electric seeks Rs5.45 per unit hike in already soaring power tariff

ISLAMABAD: K-Electric, the coastal metropolis's only power utility, on Saturday requested a Rs5.45 per unit increase in the electricity tariff under the fuel cost adjustment (FCA) for May and June 2024.

If approved by the National Electricity Power Regulatory Authority (Nepra), this hike will drastically add to the financial strain on the consumers grappling with runaway inflation amid shrinking incomes.

Citing increased fuel costs, the utility has requested Nepra to approve a tariff increase of Rs2.53 per unit for May and Rs2.92 per unit for June. In case the authority grants this request in its hearing on July 30, consumers will face an additional burden of Rs10 billion.

The request follows the government's recent increase of the base tariff for domestic consumers by up to Rs48.84 per unit earlier this week, following hikes in the petroleum levy and new taxation on agricultural income.

The hike in electricity prices, as per the notification issued by the Power Division, will also include users in Karachi; however, it will not apply to consumers using up to 200 units per month, who have been exempted from the increase for three months.

The power regulator issued its decision approving the federal government’s application for hikes in electricity tariffs for domestic, commercial, general services, bulk, and agricultural consumers.

Before this, on July 5, Nepra had approved an Rs3.3287 per unit increase in the electricity price for May 2024 due to monthly FCA; however, this increase did not apply to K-Electric consumers.

Meanwhile, the federal cabinet has also approved increasing the base tariff by Rs8.04 for commercial consumers, Rs6.62 for agricultural consumers, Rs6.96 for general services, and Rs5.96 for bulk consumers.

Following the hike, the base tariff for agricultural consumers has risen to Rs46.83 per unit, while for general services it has reached Rs61.03 per unit, sources told the publication.

Following an increase of Rs5.51 per unit, bulk consumers will pay Rs59.96 per unit from July. However, the cabinet decided to maintain the base tariff for industrial consumers.