The National Electric Power Regulatory Authority (Nepra) on Wednesday notified Rs3.70 per unit additional March fuel cost adjustment (FCA) to K-Electric users.
This will help the Karachi-based private utility to mop up an additional amount of Rs5.14 billion from consumers in the upcoming billing month of May.
In its petition, the K-Electric had demanded an FCA of Rs4.49 per unit but the regulator approved a Rs3.70 hike.
It was informed during the hearing that KE generated electricity at Rs 26.44 paise per unit in March, adding the cost of electricity received from the federation was Rs 9.50 per unit.
While Nepra Chairman expressing concerns over private utility’s performance said In last five years, K-electric electricity has not shown much improvement, as power generation on imported fuel has become very expensive.
Nepra okays 34 paise per unit hike in power tariff
Meanwhile, the Nepra also approved 34 paise per unit hike in power tariff, and the new rates will be applicable from the month of May.
The hike in power tariffs has been attributed to the rising costs of electricity production and distribution. The country has been experiencing frequent power outages and load shedding, causing immense inconvenience to citizens and businesses alike.
It is feared that this latest development may push more people below the poverty line, especially those who rely on electricity to run their small businesses.
