National Electric Power Regulatory Authority (NEPRA) has approved an increase in Karachi Electric’s (KE) tariff, affecting various consumer categories with adjustments ranging from Rs 1.49 to Rs 4.45 per unit.
These adjustments, excluding lifeline consumers, will be implemented in the months of October and November 2023, in addition to the previously approved Rs 3.28 per unit, which is set to be recovered over six months.
As per the notification, domestic consumers using up to 300 units per month will face an adjustment of Rs 1.49 per unit. Consumers using 400 units and above will pay Rs 3.2116 per unit, while other categories will incur an adjustment of Rs 4.45 per unit.
The current Quarterly Tariff Adjustment (QTA) for KE, applicable to February and March 2023 and already implemented in Distribution Companies (Discos), carries a total estimated impact of approximately Rs 30 billion, consisting of the new Rs 8 billion adjustment and the previously approved Rs 22 billion.
The decision was made following a public hearing held on September 11, 2023, which saw the participation of representatives from the Power Division, KE, and the private sector.
NEPRA also clarified that the Federal Guidelines presently address only the first quarterly adjustment of FY 2022-23 and future adjustments and there is no provision in the guidelines for addressing pending adjustments related to the 2nd and 3rd quarters of FY 2022-23.
After careful consideration, NEPRA has decided to permit the application of the first quarterly adjustment of FY 2022-23, ranging from Rs.1.4874 to Rs.4.4547/kWh for different consumer categories, excluding lifeline consumers. This adjustment is based on the consumption data from February 2023 and March 2023 and will be recovered from K-Electric consumers in the months of October and November 2023.
Regarding the quarterly adjustment for FY 2022-23, i.e., Rs.0.4689/kWh, NEPRA will process this and any other pending adjustments, such as the 3rd Quarter of FY2022-23, once policy guidelines explicitly stipulate their inclusion. These adjustments will be recovered from KE consumers prior to the formulation of policy guidelines.