Nepra approves hike in electricity tariff for KE consumers

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday increased the electricity tariff for K-Electric (KE) consumers by Rs5.76 per unit on account of fuel adjustment charges amid public outcry over exorbitant power bills.

The increase in power tariff was part of the fuel cost adjustment (FCA) for the months of May and June, according to the Nepra's notification. 

The power regulatory authority notified an increase of Rs2.59 per unit for May and Rs3.16 per unit for June power bills. The KE consumers will bear this additional burden in the electricity bills for October and November, respectively.

The adjustment will be applicable to all consumers expect Electric Vehicle Charging Stations (EVCS) and lifeline consumers, stated the notification.

K-Electric has been directed to separately show the adjustment in consumers’ bills “on the basis of units billed to the consumers in the respective months to which the adjustment pertains”.

The development follows the government's recent increase of the base tariff for domestic consumers up to Rs48.84 per unit earlier in July.

The hike came days after Maryam Nawaz-led Punjab government announced Rs14 cut per unit in the electricity bills for August and September under a power subsidy plan for the consumers, using 201 to 500 units — a move that faced strong criticism from other provinces.

Responding to criticism of foes and allies alike, Prime Minister Shehbaz Sharif clarified that the power relief package in Punjab was solely funded by the provincial government.

Speaking during a federal cabinet meeting a day earlier, the prime minister urged other provinces to follow Punjab’s footsteps and allocate their development funds to provide similar relief to electricity consumers.

He highlighted that the federal government allocated Rs50 billion to provide a three-month relief to domestic consumers using up to 200 units of electricity.

Energy Minister Awais Leghari also said on Tuesday he would share “good news” soon regarding the independent power producers (IPPs), which is often blamed for the exorbitant hike in the power tariff.

Rs0.59 net increase in bills for November: KE

Meanwhile, KE issued a statement claiming that the net increase in customer bills on account of FCA in the month of October will be Rs1.59 per unit, whereas the net increase in customer bills on account of FCA in the month of November will be Rs0.58 per unit.

In a statement, the power utility said that the NEPRA has approved K-Electric’s provisional monthly Fuel Charge Adjustments (FCA) request for May and June 2024, at Rs2.59 and Rs3.168 per kwh respectively.

These charges are not being applied on customer bills in any one month but are being spread over 2 months, the KE said, adding that FCA for the month of May will be reflected in October 2024 bill, and that of June will be charged in the bill of November 2024.

Fuel charge adjustments are incurred by utilities due to global variations in fuel prices, which are used to generate electricity and changes in generation mix, it added.

Customers also receive a benefit in their bills when global fuel prices decrease, KE says.