K-Electric Seeks Nepra Nod to Refund Rs5.02/Unit in June
Karachi, May 15, 2025 — K-Electric (KE) has submitted a petition to the National Electric Power Regulatory Authority (Nepra) seeking approval to refund Rs5.02 per unit to consumers in their June 2025 electricity bills, citing a significant reduction in fuel costs during March 2025.
According to KE’s petition, the Fuel Charges Adjustment (FCA) for March reflects lower generation costs compared to the reference tariff previously charged to consumers. If approved, this refund would result in a cumulative financial relief of Rs6.79 billion for consumers in Karachi.
Nepra has scheduled a public hearing on May 22, 2025, to review the refund proposal. However, the benefit will not apply to lifeline users, protected domestic consumers, prepaid meter holders, or electric vehicle (EV) charging stations.
This marks the seventh consecutive monthly relief granted under the FCA mechanism, continuing a downward trend that began in September 2024. Over the past several months, KE has refunded amounts ranging from Rs0.17/unit to over Rs3/unit, with the proposed Rs5.02/unit for March being the largest yet.
Shift Towards National Grid Energy
The continued reduction in fuel costs is largely due to KE’s increased reliance on cheaper electricity from the national grid, instead of its own more expensive power generation. For instance, in February 2025, KE received 1,600 MW of low-cost electricity from the National Transmission and Despatch Company (NTDC), while its own generation cost stood at Rs20.01/unit, significantly higher than NTDC’s Rs8.23/unit.
In January 2025, KE sourced 89% of its electricity from NTDC, 7% from independent power producers (IPPs), and only 4% from its own generation facilities—highlighting a strategic shift that is helping reduce electricity costs for consumers.
