ISLAMABAD: K-Electric (KE) customers could soon benefit from a Rs5.02 per unit reduction in their electricity bills, following a Fuel Cost Adjustment (FCA) request submitted to the National Electric Power Regulatory Authority (Nepra) for March 2025. The proposed reduction would amount to a total relief of Rs6.79 billion for KE consumers if approved.
Nepra held a public hearing on Thursday to review the utility’s petition, alongside a broader examination of KE’s operational and financial performance, including fuel consumption, system efficiency, and anti-theft measures.
KE CEO Moonis Alvi reaffirmed the company’s commitment to tackling electricity theft but noted increasing incidents of violent resistance, including attacks on staff—even female employees. He highlighted recent cases in P&T Colony and Nazimabad, where mobs obstructed disconnection drives and law enforcement struggled to intervene, at times leaving staff stranded until morning.
Alvi urged Nepra to issue a public call discouraging electricity theft and encouraging consumers to at least pay their previous month’s dues.
According to KE management, 70% of its feeders are load-shedding exempt. The remaining areas, characterized by high theft and poor payment rates, continue to experience scheduled outages. Infrastructure damage caused by illegal connections was also cited as a major cause of service faults.
Officials clarified that many disconnections were not due to technical issues but rather were deliberate cut-offs for non-payment.
During the hearing, Nepra requested a month-by-month breakdown of KE’s Rs14 billion generation cost claim, particularly under partial cost adjustment categories. KE officials promised to submit the required documentation.
Concerns were also raised over Rs5 billion worth of furnace oil stock at Bin Qasim Power Station-I (BQPS-I), which has a capacity of 350 megawatts. Nepra questioned the logic of holding residual fuel oil (RFO) if the plant was not operational. KE responded that maintaining the inventory met regulatory requirements and that selling the stock would result in a financial loss.
On the energy mix, industrialist Rehan Javed emphasized the need for solar energy inclusion in the upcoming Indicative Generation Capacity Expansion Plan (IGCEP), amid reports of its possible exclusion. Nepra dismissed the reports as unverified and stated that no official plan had yet been received, assuring that a public consultation would be held.
One consumer pointed out KE’s consistent negative FCA since September 2024, asking how it compared with other distribution companies (DISCOs). Nepra clarified that KE’s FCA is currently based on a March 2023 reference fuel cost of Rs15.99 per unit, and that updated tariffs would soon help align FCA differences across DISCOs.
KE also highlighted that access to domestic natural gas—priced around Rs9 per unit—would substantially reduce generation costs compared to re-gasified LNG, which costs Rs22–24 per unit.
As power demand is expected to surge with the onset of summer, both KE and Nepra emphasized the need for transparency, regulatory compliance, and coordinated efforts to improve energy service delivery across Karachi.
