December 29, 2023, Karachi: Announcing its decision on the motion filed by the Federal Government, NEPRA has adjusted the tariff of K-Electric under the head of Uniform Tariff Policy. Per NEPRA’s decision, the approved uniform quarterly tariff adjustments will be applicable on KE customers for a period of 3 months from January 2024 to March 2024.
Quarterly tariff adjustment for the 2nd Quarter of FY 2023 shall be applied on the consumption for the months of April, May, June 2023, at the rate of Rs.0.4689 per unit. Similarly, quarterly tariff adjustment for the 3rd quarter of FY 2023 shall be applied at the rate of Rs. 1.2489 per unit and on the consumption of July, August, and September 2023. As per the NEPRA’s decision, both these quarterly tariff adjustments shall be recovered from consumers, excluding lifeline consumers, after notification from the Federal Government, over a period of 3 months, effective January 2024.
Across Pakistan, electricity users are charged an equal or ‘uniform’ tariff, per the rules and regulations of the Federal Government and the regulator, NEPRA. Individual distribution companies cannot unilaterally make any changes. All such petitions undergo a public hearing and scrutiny prior to approval; a public hearing on this petition was conducted on 20th December 2023.
ABOUT K-ELECTRIC:
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square kilometers territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.