The electricity tariff is set to increase by Rs1.74 per unit in the upcoming June bills as the National Electric Power Regulatory Authority (Nepra) reviews a request for a fuel cost adjustment. This adjustment comes amid supply disruptions linked to the ongoing US-Iran conflict.
The Central Power Purchasing Agency (CPPA) has requested an additional fuel cost recovery of Rs1.73 per unit for June, which would result in over Rs16 billion in extra charges for power consumers. During a public hearing held on Tuesday, CPPA Chief Executive Rehan Akhtar revealed that the actual fuel cost in April surged to Rs9.975 per unit, compared to a reference cost of Rs8.25 per unit.
This increase was mainly caused by interruptions in liquefied natural gas (LNG) supplies due to tensions involving Iran, alongside technical challenges in transmitting more affordable power from Sindh to northern load centers. Meanwhile, government interventions have helped mitigate the impact.
Mr. Akhtar highlighted that the government implemented load management strategies and limited the use of furnace oil and diesel, which helped contain the additional cost adjustments. Special arrangements were also made for LNG imports, with the government charging Rs2,000 per unit instead of the usual Rs3,500.
Furthermore, reduced availability of the Karachi Nuclear Power Plant Unit-2 (K-2) due to forced outages contributed to the higher costs, along with pending claims amounting to Rs3.4 billion. Continued supply from the national grid to Karachi also helped moderate the impact on consumers. Without this support, K-Electric customers would have faced a combined increase of Rs4.26 per unit, including both fuel cost adjustments and capacity purchase price.
Overall electricity consumption in April fell by 8.5 percent compared to the previous year, with declines across most sectors except industry, which experienced a 13.5 percent growth. This industrial increase was driven by the incremental tariff package and gas disconnections affecting captive power plants.
In a significant development, Nepra expressed serious concern over excessive loadshedding in Karachi amid soaring temperatures and demanded an urgent, detailed report from K-Electric. The regulator noted numerous complaints from both high-loss and low-loss areas, citing irregular adherence to loadshedding schedules and unaddressed technical faults in load management.
K-Electric’s management, participating via online session, committed to submitting the report promptly. The utility later stated that its practices comply with the National Electricity Policy 2021 and attributed some localized issues to ongoing civic development work in the city.
