K-Electric Asks for a Reduction in Electricity Tariff for July-December 2019

K-Electric Limited has proposed to reduce the power tariff for its consumers in Karachi by a cumulative Rs. 2.138/kilowatt-hour (kWh). The proposed tariff cut is part of the fuel cost adjustment (FCA) for the period of July to December 2019.

The decision on increasing or decreasing the tariff for the first part of the current fiscal year will be decided during the National Electric Power Regulatory Authority’s (NEPRA) hearing on March 4.


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NEPRA decides on the FCAs with respect to the variations in fuel prices and generation mix on a monthly, quarterly, and biannual basis. Any increment and reduction will be adjusted in the consumers’ monthly bills.

The Karachi-based power supply company had proposed a slight increment for the first quarter (July, August, and September) and decrease for the second quarter (October, November, and December), which sums up to be a reduction of Rs. 2.138/kWh for the first half.

As per details, KE sought to increase of Rs. 1.13.kWh for July, Rs. 0.781/kWh for August and Rs. 0.404 for September, eyeing to collect Rs. 3.44 billion (approx.) in fuel price adjustments.


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However, as a rare occurrence, the proposed reduction in the tariffs was more than the increments. Reportedly, the utility has proposed a cut power tariff by Rs. 0.198/kWh for October, Rs. 1.901/kWh for November and Rs. 2.354/kWh for December, with a collective revenue loss of Rs. 5.159 billion.

The company has sought an upward revision of Rs. 1.377/kWh for April-June 2019 and Rs. 1.444/kWh for July-September 2019.