By Consumers of Karachi Electric (K-Electric) are facing the prospect of yet another electricity price hike, adding to their financial woes. This development follows a request made by K-Electric to the National Electric Power Regulatory Authority (NEPRA) for an additional increase of Rs3.02 per unit in electricity tariffs.
This proposed increase pertains to the quarterly adjustment for the period from April to June 2023.
The NEPRA recently concluded a hearing regarding K-Electric’s request, and further proceedings will take place once the utility provider offers its perspective on the matter, according to NEPRA officials.
Local residents and businesses in Karachi have expressed their discontent with the frequent hikes in power tariffs, stating that these increases have had a detrimental impact on their livelihoods.
NEPRA, having heard from both the electric company and the consumers, will now proceed to analyze the data and make a decision. Notably, an earlier request by the government had already resulted in a price hike of Rs3.28 per unit for Karachi during the April to June 2023 quarter.
Upon concluding the hearing, NEPRA will forward its decision to the federal government. Once approved at the federal level, this increase will be applied to K-Electric consumers.
In a separate application submitted on October 15, K-Electric requested an increase of Rs2.35 per unit through quarterly adjustments and an additional hike of 67 paisas per unit for arrears.
Should this request be approved, it would translate to an extra financial burden of Rs1.6 billion for electricity consumers in Karachi.
The situation highlights the ongoing challenges in balancing the need for fair and sustainable electricity rates with the financial viability of power providers. The authorities face the delicate task of ensuring that consumers are not unduly burdened by price increases while also safeguarding the operational health of K-Electric.
The frequency of these tariff adjustments and the financial strain they impose on the people of Karachi have brought to the forefront the need for a comprehensive and sustainable solution to address these issues.
The decision that NEPRA ultimately arrives at will have significant implications for both K-Electric and the residents and businesses that rely on its services.
