The National Electric Power Regulatory Authority (NEPRA) has announced a 20-paise per unit increase in electricity rates. This adjustment, part of the quarterly review for the first quarter of the fiscal year, will add an extra Rs1.18 billion to the bills of electricity users across Pakistan.
Who Will Be Affected?
- Effective Date: The increase is for December 2024 only.
- Exemptions:
- Lifeline and prepaid electricity users will not have to pay the extra amount.
- People who are using the winter package or extra electricity will also not be charged the increased rate.
This increase follows the quarterly adjustment for July to September 2024, which NEPRA had already finalized and sent to the government. Before this, an earlier adjustment of Rs1.74 per unit was applied in November 2024.
K-Electric Faces Financial Problems
At the same time, NEPRA is reviewing claims by K-Electric about unpaid bills from users who haven’t cleared their dues. On December 10, 2024, NEPRA held a public hearing to discuss K-Electric’s claims from 2017 to 2023.
Key Issues for K-Electric:
- Unpaid Bills:
K-Electric says it has Rs68 billion in unpaid bills from the last seven years. They say this money is very important for keeping the company financially stable. - Efforts to Collect Payments:
K-Electric has tried many ways to recover the money, like disconnecting services, working with recovery agencies, and focusing on specific areas. - Verification:
All claims have been checked internally and audited by external experts, as required by NEPRA.
Karachi Residents’ Concerns:
Many people in Karachi have complained that K-Electric’s money problems are making power supply unreliable for homes and businesses.
K-Electric’s Response:
K-Electric explained that it operates as a private company and does not contribute to the country’s national circular debt, which is a big issue for other utilities. They warned that if these claims are not accepted, it could hurt their ability to upgrade infrastructure and improve electricity services in Karachi.
What This Means for Pakistan’s Power Sector
These issues highlight bigger problems in Pakistan’s energy system, such as:
- Increasing financial pressure on electricity users.
- Struggles by power companies to recover unpaid bills.
- The need for better systems to reduce losses and improve efficiency.
Consumers are encouraged to stay updated through trusted news outlets and official NEPRA announcements.
For more information, visit NEPRA’s official website.
FAQs About the Recent Electricity Price Hike and K-Electric’s Financial Woes
Why is the electricity price going up?
NEPRA, the government body that regulates electricity prices, has decided to increase the price per unit to cover increased costs. This is a quarterly adjustment, and unfortunately, this time around, prices are going up now.
Who has to pay the extra money?
Most consumers will have to pay more. However, there are exemptions for people on low-income plans and those using less electricity during the winter months 2025.
When will I see the price increase on my bill?
You should see the increased price on your December 2024 electricity bill.
Why is K-Electric in trouble?
K-Electric, the main power company in Karachi, is struggling because many of its customers, especially businesses, haven’t been paying their bills. This is causing a huge financial problem for the company.
How does this affect me as a consumer?
If K-Electric doesn’t get the money it’s owed, it could impact the quality of power supply in Karachi. This might mean more power cuts or lower voltage.
What is NEPRA doing about K-Electric’s problem?
NEPRA is looking into K-Electric’s claims and holding public hearings to understand the situation better. They will decide what steps to take to protect consumers and ensure a stable power supply.
What can I do to help?
The best thing you can do is to pay your electricity bill on time. This will help power companies like K-Electric stay financially healthy and provide better service.