The National Electric Power Regulatory Authority (Nepra) has authorized K-Electric to charge users an additional Rs3.9342/unit in May 2023 for monthly Fuel Charges Adjustments (FCA) for March 2023, which will result in substantial financial hardship for Karachi citizens.
The impact on the city’s already-strapped electrical consumers will be tremendous, amounting to Rs5.814 billion in just one month.
Except for customers of K-Electric’s Lifeline program and Electric Vehicle Charging Stations (EVCS), this monthly increase will apply to all consumer groups.
On May 3, Nepra convened a public hearing to resolve a petition from the utility company in Karachi that asked for a Rs4.49 per unit increase on account of FCA for March 2023. Other members of the authority were present, while Nepra Chairman Tauseef H Farooqi presided over the proceedings.
The company has also added 6.019 GWh in its proposal for the net metering units it purchased in March 2023. The FCA for the month of March 2023 included this energy, according to the authority.
Due to billing adjustments made by Sui Southern Gas Company (SSGC) about the gas quota of indigenous gas and RLNG that were delivered in February 2023, K-Electric (KE) has reported a large financial loss of Rs242.43 million. The National Electric Power Regulatory Authority (Nepra) has acknowledged this loss and taken it into account in the choice, though.
Additionally, as part of the FCA claim, Rs1.42 million has been tentatively withheld due to Lotte receiving an unjustified dispatch on March 15–16, 2023. Nepra requested additional information and clarification from K-Electric (KE) in order to allay any worries and guarantee legal compliance.
Commentator Tanveer Barry has expressed concern about the significant fuel charge adjustments (FCA) anticipated in the summer of 2023. In response, K-Electric said that the addition of Bin Qasim Power Station 3 (BQPS-III) will result in a general decrease in generation costs.
Imran Shahid, a commentator, has argued that K-Electric (KE) should stop operating inefficient power plants that have outlived their usefulness since they are increasing generation costs. In response, KE said that over the previous 15 years, the efficiency of its whole generation fleet had increased from 30% to 48%. KE further highlighted that unit-5 and unit-6 will only be run if they meet the economic merit order (EMO) to meet load requirements and that BQPS-I units 1 and 2 will be retired within the next three months.
