As the National Electric Power Regulatory Authority (Nepra) has directed power distribution companies, including K-Electric (KE), to refund excess charges collected previously, power consumers across Pakistan are expected to see reduced electricity bills in the current month.
Nepra has approved refunds of Re0.7556 per unit for consumers of state-run Discos under monthly fuel cost adjustments (FCA) for November 2024 and Re0.4919 per unit for KE customers for October 2024 in separate decisions issued on Tuesday.
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According to the Central Power Purchasing Agency-Guarantee (CPPA-G), the adjustment for Discos stems from a decrease in the actual fuel cost of Rs7.2274 per unit in November, compared to the reference cost of Rs7.8609 per unit.
Nepra reviewed the data and finalized a uniform refund rate of Re0.7556 per unit, citing underutilization of cost-efficient Thar coal power plants as a contributing factor to higher generation expenses.
Nepra noted inefficiencies in operating Thar coal power plants at partial capacity, which inflated per-unit costs due to fixed charges tied to coal mine operations. The authority also highlighted the delays in local Thar coal supply to Karachi’s Lucky Coal Power Plant, which exacerbated reliance on expensive imported fuels.
K-Electric, serving Karachi and adjoining areas, initially sought a refund of Re0.27 per unit for October 2024. After reviewing adjustments, Nepra raised the refund to Re0.4919 per unit, benefiting KE consumers with a total impact of Rs843 million.