Nepra approves fifth consecutive tariff hike for KE, allowing Rs0.40/unit increase in Jan 2025 bills

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2024-11-06T05:15:28+05:00 Fawad Yousafzai

ISLAMABAD  -  The National Electric Power Regulatory Authority (NEPRA) for the fifth consecutive month has increased the tariff of K-Electric (KE) and allowed the company to collect an additional Rs0.4013 per unit from the consumers in their January 2025 bills. In its decision on the KE’s petition, the NEPRA has allowed KE to collect an additional Rs674 million in one month from power consumers on account of monthly fuel charges adjustment (FCA) for August 2024. However, combined with an 18 percent GST, consumers will pay a total of Rs795 billion. It will be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS), lifeline consumers and prepaid metering consumers.

It is to be noted that the utility had sought Rs0.51/unit collection, but the authority after holding a public hearing on October 3, and analysing the data submitted by the petitioner, Rs0.4013/unit was allowed under the under the FCA mechanism, based on the interim reference tariff set in March 2023. It is to be noted that for earlier month of July, the FCA for K-Electric was allowed to charge additional Rs3.0362/unit in month of in December bills. It has an impact of Rs6.105 billion. It should be recalled the regulator earlier granted K-Electric an extra collection of Rs2.5934 per unit in October and Rs3.1688 per unit in November bills. These increases are on account of May and June 2024 FCAs. Similarly, for the month of April also the regulator had allowed KE to charge an additional Rs3.332 per unit from the consumers on account of Fuel Charges Adjustments (FCA).

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