KE Proposes Power Tariff Reduction Amid Fuel Cost Adjustments

K-Electric (KE) has put forward a proposal to reduce electricity rates by Rs. 4.84 per unit under the Fuel Charges Adjustment (FCA) for January 2025. In response, the National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on March 20, 2025, to assess the request.

NEPRA will examine whether the suggested reduction, which is based on the March 2023 interim reference tariff, is justified.

According to industry estimates, if this proposal gets approved, KE consumers could benefit from Rs. 4,695 million in relief on their electricity bills.

Apart from the FCA reduction, KE has also requested regulatory approval for an adjustment of Rs. 13.5 billion in accumulated fuel costs spanning July 2023 to January 2025. The company has highlighted pending determinations related to power plant operations, partial load usage, open cycle functioning, degradation curves, and startup costs as critical issues requiring NEPRA’s review. The decision of the hearing will directly influence electricity tariffs for Karachi residents.

NEPRA will investigate whether KE followed the merit order in dispatching power from its own generation plants and purchasing electricity from external suppliers. The regulator will also assess KE’s plan to adjust pending fuel costs against the negative FCA variations recorded in December 2024 and January 2025. These evaluations will determine the extent of financial relief for consumers.

The public hearing will take place at NEPRA Tower in Islamabad, with an online participation option available.

To uphold transparency, NEPRA has invited consumers, industry representatives, and stakeholders to share comments and objections before the session. Additionally, all related documents, including KE’s FCA request, regulatory codes, and previous determinations, have been uploaded on NEPRA’s official website (www.nepra.org.pk).