K-Electric Seeks Rs5.02/unit Tariff Cut for March 2025 Fuel Charges
K-Electric (KE), the power utility for Karachi, has submitted a formal request to the National Electric Power Regulatory Authority (NEPRA), seeking a Rs5.02 per kilowatt-hour (kWh) reduction in electricity tariffs for March 2025 under the Fuel Charges Adjustment (FCA) mechanism.
Rs6.79 Billion Relief for Consumers
According to KE’s petition, if approved, the reduction would translate into a total relief of Rs6.79 billion for its consumers. The adjustment is based on an interim reference tariff from March 2023, which serves as the benchmark for calculating the proposed reduction.
NEPRA has announced that a public hearing will be held on May 22, during which stakeholders can present written or oral comments on the proposal.
Pending Adjustments of Rs14.6 Billion
KE’s petition goes beyond just the March 2025 FCA. It also includes a request for an additional adjustment of Rs14.6 billion, pending since July 2023, related to:
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Actual fuel cost adjustments
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Partial load operations
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Open-cycle plant operations
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Plant degradation
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Startup costs
Previously, NEPRA had already accounted for Rs9.4 billion of this in FCA decisions from November 2024 to January 2025. KE now argues that applying the remaining adjustments using negative FCAs for February and March 2025 would help avoid placing future financial pressure on consumers.
Merit Order and Technical Justifications Under Scrutiny
NEPRA has outlined several key evaluation points for the upcoming hearing:
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Is the Rs5.02/unit FCA reduction for March 2025 justified?
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Did KE follow the merit order while dispatching power from its own plants and external sources?
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Are the technical costs such as partial load operations and degradation reasonable?
NEPRA also invited all interested or affected parties to participate in the hearing. Relevant documents and background information are publicly accessible on NEPRA’s official website.
Conclusion
If NEPRA approves KE’s request, consumers could see meaningful relief in their electricity bills for March 2025. The outcome of the hearing will also impact how older cost claims and future tariff structures are handled — a critical decision for both regulators and consumers navigating an era of rising energy prices.
