KE’s Obstacles Delay Relief for Karachi Consumers, Rs 13.5 Billion Extra Charges Imposed

Karachi: Karachi Electric (KE) has become a hurdle in providing relief to consumers as it presented expenses amounting to Rs 13.5 billion, which are now to be charged to consumers. According to the fuel price adjustment for January, KE is supposed to reduce electricity tariffs by Rs 4.84 per unit, but instead, it has introduced new charges.

During a hearing by the National Electric Power Regulatory Authority (NEPRA), it was revealed that since the fuel price adjustment was introduced, KE has added costs, such as start-up expenses for power plants and reduced efficiency costs, to be borne by consumers.

The hearing further disclosed that out of the Rs 13.5 billion, Rs 7.4 billion has already been collected from Karachi’s electricity consumers, meaning the relief that should have been passed on to them was not provided. The remaining Rs 6.1 billion will be collected from consumers in installments.

KE has proposed that part of the relief intended under the January fuel price adjustment, amounting to Rs 4.84 per unit, be withheld and used to cover outstanding dues. However, NEPRA was unable to justify imposing this Rs 13.5 billion burden on consumers, leaving the public dissatisfied.

During the hearing, a Karachi consumer raised concerns about KE charging consumers for power plant start-up and efficiency costs. When asked if NEPRA’s laws permit passing on such expenses to consumers, the NEPRA officials responded that the authority had exercised its discretion in this matter.

This ongoing issue highlights the tension between electricity providers and consumers, with residents calling for more transparency and fairness in the pricing mechanisms.