K-Electric prices went up by another Rs1.55 per unit.
The National Electric Power Regulatory Authority (Nepra) has approved adding Rs1.55 per unit to the price of energy in Karachi.
As part of the change for the second quarter of the previous fiscal year, the regulatory body gave K-Electric permission to raise its rates.
The ruling has been sent to the federal government so that a notice can be made.
From May to July 2023, the extra money will be taken out of the bills.
Nepra was asked by the federal government to keep all tariffs in the country the same.
The decision was made by the regulatory body after the federal government asked for a hearing.
Nepra told K-Electric customers earlier this month that their electricity rates would go up by Rs3.93 per unit because of fuel cost adjustment (FCA) for the month of March 2023.
The ruling by Nepra would show up on the power bill for May 2023.
K-Electric had asked for a Rs4.49 per unit rise.
The regulator said that on January 26, 2010, the National Transmission and Despatch Company (NTDC) and K-Electric signed a power purchase deal for five years to sell or buy 650MW of electricity at basket rates.
Then, at a meeting on November 8, 2012, the Council of Common Interests (CCI) made a decision about how the petitioner could withdraw electricity from the NTDCL. They decided to cut the amount of energy that the company sent to K-Electric by 300MW.
But K-Electric filed lawsuits and petitions in the Sindh High Court in Karachi to challenge the CCI’s ruling.
Up until now, K-Electric and the NTDCL had not signed a new deal.
K-Electric kept getting power from the national grid, which was around 1,100MW at the time.
In its adjustment requests, the city’s power company said that it sent out power in the order of economic value from its own generation units, using the available fuel, and brought in power from outside sources.
It also said that the cost of the fuel and power claims did not include any late payment fees, markups, or interest.
Commentator Tanveer Barry was worried about the high FCAs in the summer of 2023.
K-Electric said that if Bin Qasim Power Station 3 (BQPS-III) was added, the total cost of power generation would go down.
Imran Shahid, another commenter, said that K-Electric shouldn’t be running old, useless plants that were costing the company more to make electricity.
In response to the comments, K-Electric said that over the last 15 years, it had improved the general efficiency of its fleet of power plants by 48%.
It said that units 1 and 2 of BQPS-I would be turned off after three months, and units 5 and 6 would only be used if they were the most cost-effective way to meet the load requirement.