K-Electric Seeks Massive Tariff Hike on Account of FCA

K-Electric, Karachi’s primary electricity provider, has petitioned the National Electric Power Regulatory Authority (NEPRA) for an adjustment in electricity tariffs, specifically targeting the Fuel Charge Adjustment (FCA) component.

The request, spanning seven months from July 2023 to March 2024, proposes an increase of Rs18.86 per unit, with a slight decrease for two months within the period. However, after factoring in the decrease, consumers would still face a net increase of Rs18.57 per unit.

The rationale behind the request stems from the escalating fuel costs for electricity generation, exacerbated by the pending approval of the Multi-Year Tariff, leaving K-Electric vulnerable to market fluctuations.

NEPRA is set to deliberate on K-Electric’s petition during a hearing scheduled for May 9th, where the validity of the proposed tariff adjustments will be assessed.