Karachi consumers are faced with RS13.5bn burden because Ke blocks power rate relief Blogging Sole

A view of the K -Electric head office, with solar panels in the parking lot, in Karachi, January 24, 2023. - Reuters
A view of the K -Electric head office, with solar panels in the parking lot, in Karachi, January 24, 2023. – Reuters
  • NEPRA discovers the RS13.5 billion KE RS13.5 billion expense recovery plan.
  • RS7.4bn already recovered by the reservoir, RS6.1bn to follow.
  • The costs of power plants, the loss of efficiency transmitted to consumers.

It is unlikely that Karachi electricity consumers will have relief from RS4.84 per unit because K-Electric has become a major obstacle, Geo News reported.

During an audience on the request of K-Electric, the National Electric Power Regulatory Authority (NEPRA) discovered that the public power service had introduced additional expenses amounting to Rs13.5 billion, that it intends to recover from consumers.

Under the adjustment of fuel prices (FPA) for January, KE consumers were supposed to receive a reduction in RS4.84 per unit.

However, the audience revealed that since the monthly FPA adjustments began to reduce electricity rates, KE has brought new expenses worth 13.5 billion rupees in various categories of costs.

It has been revealed that K-Electric began to transmit costs related to power plants and efficiency losses for consumers. Of the total of RS13.5 billion, 7.4 billion rupees have already been recovered from Karachi consumers by not bringing full relief, while 6.1 billion remaining rupees will be collected in phases.

In addition, K-Electric has now suggested that instead of transmitting the full RS 4.84 per unit for relief from the FPA in January, part of this amount should be adjusted against exceptional contributions.

NEPRA has not justified why Karachi consumers should bear the burden of 13.5 billion rupees. A Karachi resident asked for how K-Electric could pass the costs of electrical plants and loss of efficiency with consumers.

In response to another question as to whether the NEPRA law authorizes the transfer of RS 13.5 billion additional rupees to consumers, NEPRA officials declared that the authority had exercised “wisdom” in its decision -making.

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