Karachi, August 01, 2024: K-Electric’s Power Generation Cost 200% Higher Than National Grid Average: Document.
A recent document reveals that K-Electric has been generating electricity at a cost 200% higher than the national average. In June, K-Electric’s generation cost exceeded Rs 58 per unit, compared to the national average of Rs 26.80 per unit.
The cost of K-Electric’s power generation methods significantly surpasses the national grid’s average of Rs 9 per unit. Diesel-powered generation cost Rs 58.10 per unit, while furnace oil cost Rs 41.80 per unit. Additionally, power generated from LNG and gas cost Rs 38.10 and Rs 8.80 per unit, respectively.
The high cost of power generation by K-Electric has imposed an additional financial burden on Karachi residents, who are already facing high electricity bills.
Yesterday, the National Electric Power Regulatory Authority (NEPRA) confirmed overbilling by all power distribution companies, including K-Electric, for April and June. NEPRA has demanded explanations from these companies and directed them to adjust consumer bills based on actual units consumed.
The official notification from NEPRA stated that companies had overcharged consumers beyond the actual units used, violating NEPRA’s regulations. Companies are required to correct these bills and refrain from imposing late payment surcharges on overdue payments. Additionally, all defective meters must be replaced immediately, and companies must submit a compliance report to NEPRA within 30 days.
In June, over 300,000 power consumers lost their protected status due to a new billing system implemented by the distribution companies under the Ministry of Energy’s orders, resulting in inflated electricity bills. Consumers in the protected category usually benefit from subsidized rates or price increase exemptions.
