K-Electric’s Proposed Fuel Adjustment Charges Met with Resistance


ISLAMABAD – The National Electric Power Regulatory Authority (Nepra) confronted K-Electric’s request for an additional fuel cost recovery of up to Rs18.6 per unit from its consumers over the past nine months. During a public hearing led by Nepra’s Sindh member, Rafique A. Shaikh, key consumer groups and trade bodies strongly opposed any tariff hikes until consumers receive approximately Rs75 billion owed to them, currently blocked by legal challenges initiated by K-Electric.

Major concerns raised during the hearing included questioning the legitimacy of provisional fuel cost adjustments (FCA) based on unapproved base tariffs, as well as challenges regarding new items claimed in the adjustment, such as working capital, which are not permitted by law.

Business and trade bodies, including the Karachi Chamber of Commerce and Industry (KCCI) and Surjani Association of Trade and Industries (SATI), expressed their reluctance to pay proposed fuel cost adjustments even if approved, citing financial constraints and blocked dues owed to them by K-Electric due to legal proceedings.

The Nepra panel acknowledged the challenges faced by consumers and pledged to explore options to minimize the sudden impact of any approved recovery. Meanwhile, political representatives criticized the proposed tariff hike, highlighting issues with the national grid’s surplus capacity utilization and persistent load-shedding in various areas.

In response, K-Electric assured the public hearing that examination centers would be exempt from power outages, with CEO Moonis Alvi stating readiness to address similar concerns raised by interveners.

K-Electric’s proposal seeks to recover up to Rs26 billion over nine months through different options, including adjustments based on actual fuel costs versus reference costs as per interim or proposed tariffs. Nepra is yet to announce its decision on this matter.

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