The National Electric Power Regulatory Authority (NEPRA) approved the K-Electric's request for an increase in the cost of electricity and allowed it to increase by Rs. 4.48 paise per unit.
The NEPRA's decision on the application states that the new electricity tariff for K-Electric consumers will be Rs 17.66 paise per unit and consumers will have to bear a total burden of around Rs 106 billion.
The authority said it issued a decision on 11 quarterly applications of K-Electric, the price increase for electricity will start from the July to September quarter of 2016 and will be from January to March quarter of 2019.
NEPRA has clarified that the government has approved tariff imposition across the country and the increase in prices will also be approved at the government level.
On the other hand, Electric said that NEPRA had given a decision on July 5, 2018 on K Electric's request for electricity tariff for the period from 17-2016 to 23-2022. Under the cost of electricity was approved at Rs 12, 81 paisa per unit.
According to the statement, K-Electric had also approached the Sindh High Court, where the honourable court had issued a stay order on the said tariff, however, K-Electric withdrew its request and followed its request to the authority.
Later, on the request of K-Electric, the hearing was held on August 21, 2019 in Karachi Hotel and Nepra Tower Islamabad through video link for which advertisements were also given in the newspapers on August 8, 2019.
K-Electric said in its statement that the reason for the price hike was that K-Electric had to spend 24 billion on the use of RLNG, as well as gas prices.
K-Electric defended the decision to increase electricity prices, citing other costs, saying that furnace oil and O&M prices had increased.
On the other hand, OGRA also proposes to increase the prices of petroleum products at the beginning of the new year.
It may be recalled that last week, NEPRA approved a Rs 56 paise per unit increase in the electricity tariff on account of the fuel adjustment of electricity used in October.
The Central Power Purchasing Agency (CPPA) had demanded an increase of Rs 73 per unit, which was approved while the aforementioned increase would put an additional burden of Rs 14 billion 50 crores on electricity consumers.
NEPRA makes monthly and quarterly adjustments in electricity rates, which are finally approved by the federal government.