K-Electric proposes PKR 5.02/kWh refund to customers on lower generation cost

K-Electric has petitioned the National Electric Power Regulatory Authority (NEPRA) to approve a refund of PKR 5.02 per kilowatt-hour (kWh) for customers under the monthly fuel charges adjustment (FCA) for March 2025.

The utility cited lower fuel costs in its request for the rate decrease. If approved, the adjustment would provide PKR 6.79 billion in relief to consumers, appearing as a credit in their June 2025 bills.

The refund would apply to all customers except lifeline users, domestic protected consumers, prepaid accounts, and electric vehicle (EV) charging stations.

This latest adjustment would add to a series of fuel-cost refunds in Karachi, where electricity rates have fluctuated in recent months. NEPRA has scheduled a public hearing on K-Electric’s petition for May 22.

Since December 2024, K-Electric customers have received refunds based on monthly FCA adjustments, including PKR 0.1758 per unit in September, PKR -0.4919 in October, PKR -1.23 in November, PKR -3.00 in December, PKR -3.02 in January, and PKR -3.6396 in February.

In February, K-Electric sourced 1,600 megawatts of low-cost electricity from the national grid, as its own generation costs were more than double those of the grid. In January, 89 percent of its electricity came from the National Transmission and Despatch Company (NTDC), while independent power producers supplied seven percent and K-Electric’s own plants contributed just four percent.

The utility’s generation cost stood at PKR 20.01 per kWh in February, compared to NTDC’s PKR 8.23 per unit.