KARACHI, March 22, 2025 – Karachi’s electricity consumers may not receive the expected Rs4.84 per unit relief in electricity bills as K-Electric (KE) introduces additional costs, significantly reducing the intended benefit, Geo News reported.
During a hearing by the National Electric Power Regulatory Authority (NEPRA), it was revealed that KE had factored in extra expenses worth Rs13.5 billion, which it plans to recover from consumers, creating a major financial burden on Karachiites.
Breakdown of the Additional Costs
- Under the Fuel Price Adjustment (FPA) for January, KE consumers were supposed to get a Rs4.84 per unit reduction.
- However, KE introduced new cost adjustments, including power plant start-up costs and efficiency losses, shifting these expenses onto consumers.
- So far, Rs7.4 billion has already been recovered from Karachi’s consumers by not passing on the full relief, while the remaining Rs6.1 billion will be collected in phases.
Controversy Over Cost Transfers
- KE has suggested that instead of providing full relief, a portion of the Rs4.84 per unit adjustment should be used to settle outstanding dues.
- NEPRA faced criticism from concerned Karachi residents, who questioned how KE could justify passing on power plant inefficiencies and start-up costs to consumers.
- When asked whether the NEPRA Act allows such additional cost transfers, officials responded vaguely, stating that the authority had exercised “wisdom” in its decision-making.
With no clear justification for the Rs13.5 billion burden, Karachiites continue to bear the rising cost of electricity, despite expectations of relief.
