Karachi consumers may soon benefit from a potential reduction in electricity prices. The National Electric Power Regulatory Authority (NEPRA) held a hearing regarding the monthly fuel price adjustment (FPA) request for January 2025 by K-Electric, which proposes a reduction in electricity rates.
Earlier, K-Electric had requested a decrease of 4.84 rupees per unit for the January adjustment. If approved, this would result in a relief of 4.69 billion rupees for consumers.
During the hearing at NEPRA’s headquarters, K-Electric officials explained that the decrease in electricity prices was due to lower purchasing costs. They also noted that no electricity was generated from furnace oil in the previous month.
NEPRA member Rafique Sheikh inquired about the 8% year-on-year reduction in electricity growth and asked about the reasons for this decline. K-Electric officials explained that lower temperatures led to reduced electricity consumption, and that economic conditions had also led to decreased industrial electricity usage. Furthermore, the use of solar panels contributed to the overall reduction in electricity demand.
NEPRA has requested a detailed report from K-Electric within a week, explaining the reasons behind the decline in electricity consumption. Additionally, NEPRA has asked all distribution companies (DISCOs) to provide details regarding the interest on amounts related to net metering customers.
According to K-Electric, if the request is approved, the reduction in electricity prices will apply to all consumers, except for lifeline consumers, protected consumers, prepaid consumers, and electric vehicle charging stations. NEPRA will issue a detailed decision after further scrutiny.
