ISLAMABAD: K-Electric (KE) consumers may soon benefit from a Rs5.02 per unit reduction in electricity bills for March 2025 under a *Fuel Cost Adjustment (FCA), potentially translating into a *Rs6.79 billion total relief, pending approval from the National Electric Power Regulatory Authority (Nepra).
Nepra conducted a public hearing on Thursday, during which KE presented key operational and financial details, including fuel usage, system efficiency, and measures against electricity theft in Karachi.
KE CEO Moonis Alvi emphasized the utility’s commitment to combating power theft but highlighted the growing danger to staff, citing *violent attacks, particularly in *P\&T Colony and Nazimabad, where employees were trapped overnight by hostile mobs. He urged Nepra to publicly discourage power theft and encourage citizens to at least pay their past bills.
KE revealed that *70% of its feeders are exempt from load-shedding, while high-theft and non-paying areas face scheduled outages. It clarified that many so-called faults were in fact *intentional disconnections due to non-payment.
Nepra scrutinized KE’s *Rs14 billion cost claim, requesting a month-wise breakdown and clarification on Rs5 billion worth of *furnace oil stock held for the non-operational Bin Qasim Power Station-I. KE said holding the stock complied with regulations and selling it would incur losses.
Concerns were also raised about potential exclusion of solar power from the upcoming Indicative Generation Capacity Expansion Plan (IGCEP). Nepra dismissed such reports as speculative and assured a public hearing would be held before any final decisions.
A consumer questioned KE’s ongoing negative FCAs since *September 2024, comparing them with other DISCOs. Nepra explained that current FCA calculations for KE are based on *March 2023’s reference fuel cost of Rs15.99, and this gap will reduce once updated tariffs are implemented.
KE noted that using local natural gas, priced at Rs9 per unit versus Rs22–24 for RLNG, could significantly lower generation costs.
As Karachi enters peak summer demand, both KE and Nepra stressed the importance of transparency, compliance, and collective efforts to ensure reliable power delivery.
Story by Zafar Bhutta
