K-Electric’s Power Generation Costs 200 pc Above National Average

K-Electric’s electricity generation costs are significantly higher than the national average, reaching over Rs. 58 per unit in June, a 200% increase compared to the national average of Rs. 26.80 per unit. This discrepancy includes costs of Rs. 58.10 per unit for diesel and Rs. 41.80 per unit for furnace oil, with LNG and gas costing Rs. 38.10 and Rs. 8.80 per unit respectively.

The inflated power generation costs have exacerbated the financial strain on Karachi’s residents, who are already grappling with high electricity bills. The National Electric Power Regulatory Authority (NEPRA) has confirmed instances of overbilling by all power distribution companies (DISCOs), including K-Electric, for the months of April and June.

In response, NEPRA has mandated that all distribution companies adjust consumer bills to reflect actual units consumed and refrain from imposing late payment surcharges. Additionally, companies are required to replace defective meters promptly and submit a compliance report within 30 days.

The new billing system, introduced under the Ministry of Energy’s directives, led to over 0.3 million consumers being removed from the protected category, resulting in inflated bills for June. The protected category typically includes benefits such as subsidized rates or price increase exemptions.