NEPRA Announces Rs10.1/unit Electricity Price Hike for Karachi

Islamabad: NEPRA Raises Karachi Electricity Rates by Rs10.1 per Unit

The National Electric Power Regulatory Authority (NEPRA) has released a notification announcing a Rs10.1 per unit increase in electricity rates for Karachi. This adjustment, attributed to the monthly fuel adjustment mechanism, outlines incremental charges over the coming months. In June, consumers will face an additional charge of Rs2.68 per unit, followed by Rs3.11 per unit in July, Rs3.22 per unit in August, and an extra Re1 per unit in September.

However, this increase excludes lifeline consumers of K-Electric (KE) and vehicle charging stations. KE had originally requested this fuel adjustment hike to cover the period from July 2023 to March 2024, with the additional charges expected to burden consumers by over Rs20 billion.

NEPRA's decision follows a hearing on KE's request for a nine-month extension of the monthly fuel adjustment charges. Consequently, KE customers will experience increased rates from June to September, highlighting ongoing challenges faced by Karachi's electricity consumers amidst fluctuating fuel costs and broader economic impacts of energy price adjustments.

Earlier, NEPRA announced a Rs3.33 per unit increase in electricity prices for non-Karachi consumers, imposing an additional burden of over Rs35 billion on consumers as part of April's monthly fuel adjustment. The Central Power Purchasing Agency (CPPA) had initially requested a Rs3.49 per unit hike, slightly higher than NEPRA's settled increase.

Furthermore, NEPRA issued a notification on June 4, announcing electricity price hikes as part of the quarterly adjustment for the current financial year. This adjustment, reflecting an increase of Rs1.90 per unit for June and 93 paisas per unit for July and August, will result in higher electricity bills for consumers from June to August 2024.