ISLAMABAD-The National Electric Power Regulatory Authority (NEPRA) Wednesday hinted at hike of Rs2.31 per unit in tariff for the K-Electric as the regulator was informed that that the cost of generation from K-Electric (KE)’s own power plants in June was 114 percent higher than the electricity purchased from external sources.
In a public hearing on KE’s petition for tariff hike on account monthly fuel charges adjustment (FCA) for June 2023., NEPRA was told that KE has generated expensive power of up to Rs 50.31/unit during June. Nepra Chairman Tauseef H Farooqi chaired the proceedings, while the authority’s members, including Rafique Ahmad Shaikh (member technical) Sindh, Amina Ahmed (member law) Punjab, Maqsood Anwar Khan from Khyber-Pakhtunkhwa and Mathar Niaz Rana (member tariff and finance) from Balochistan were present.
In a petition submitted to NEPRA, K-Electric had sought a hike of Rs2.336/unit on account of monthly FCA for June 2023. However, NEPRA, after the preliminary analysis, has calculated an increase of Rs 2.31/unit in tariff for consumers of KE. During hearing, it was informed that K-Electric had generated electricity at an average cost of Rs 24.90/ unit from its own power plants, which is 114 percent higher that electricity purchased from external sources (Rs 11.65/unit). KE has purchased power at Rs 9.340/unit from CPPA-G. 
K-Electric generated electricity from high speed diesel (HSD) at Rs 50.31/unit, LNG at Rs 43.37/unit, and from furnace oil in June at Rs 35.91/unit. K-Electric did not generate any electricity from gas in June. In June 2023, K-Electric generated 50.2% of electricity from its own sources and purchased 49.8% of electricity from external sources. 
It is worth to mention here that to keep the prices of the KE uniform with the rest of the country, the federal government will be paying Rs 178 billion subsidy. The increase shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers. The increase of Rs 2.31/unit will have an impact of Rs 5 billion (including GST) on the KE’s consumers.