NEPRA raises electricity tariffs across the nation

This rise in electricity rates is attributed to the quarterly adjustment for the first quarter of the current fiscal year. The announcement indicates that consumers will incur an extra cost of Rs1.18 billion in electricity tariffs.

NEPRA has previously concluded the quarterly adjustment for July to September and communicated the judgment to the government.

The rise in electricity costs will be effective solely for December 2024. Nonetheless, the modification will not pertain to lifeline and prepaid electricity users. Moreover, consumers utilizing additional electricity will be spared from this quarterly adjustment under the winter package.

The recovery of the final quarterly adjustment for the previous fiscal year, totaling Rs. 1.74 per unit, was completed in November 2024.

On December 10, NEPRA closed its hearing regarding K-Electric’s annual claims of unrecoverable dues from chronic defaulters.

During the hearing, consumers articulated numerous objections over K-Electric’s claims from FY17 to FY23, emphasizing significant difficulties encountered by households and companies in Karachi.

K-Electric stated that it is permitted to recover these expenses through the multi-year tariff granted to the utility, which operates independently of the electricity rates billed to customers under the uniform tariff policy.

K-Electric clarified that the Rs68 billion figure mentioned during the hearing had accrued over a seven-year span, which is vital for the company’s ongoing financial viability.

“These amounts have remained irretrievable despite extensive efforts against defaulters, including numerous disconnections, collaboration with specialized recovery agencies, and targeted initiatives,” the statement indicated.

KE asserted that “the submissions to NEPRA have also undergone strict internal scrutiny as well as external audits by well-accredited and renowned audit firms as required by the NEPRA Authority.”.

During the event, the K-Electric spokesperson remarked, “In contrast to DISCOs, K-Electric, as a private utility, does not contribute to the national circular debt, a fact acknowledged by the World Bank and esteemed global institutions.”

The spokesperson urged that “disallowing legitimate claims will therefore directly impact KE’s cashflows, affecting our capacity to fulfill plans to drive infrastructural upgrades for enhanced power supply to Karachi.”

K-Electric stated that it will persist in actively collaborating with the regulator over this issue.