The K-Electric, the sole power utility in Karachi, on Thursday submitted a request to the National Electric Power Regulatory Authority (Nepra) seeking a hike of Rs5.50 in tariff under fuel adjustment charges.

According to the request, the power utility has requested an increase of Rs5.18 for July to September 2021, and rupee 0.32 for November.

The national power regulator will take up the KE's plea for a hearing on Jan 3, 2022.

Under the tariff mechanism, changes in fuel cost are passed on to consumers only on monthly basis through an automatic mechanism, while quarterly tariff adjustments on account of variation in the power purchase price, capacity charges, variable operation and maintenance costs, use of system charges and including the impact of transmission and distribution losses are built in the base tariff by the federal government.

In November, the Nepra had allowed the federal government to notify an Rs1.68 per unit increase in base power tariff for all residential consumers and Rs1.39 per unit for all other consumer categories with effect from November 1, in order to meet another requirement of the International Monetary Fund's programme.

The higher tariff would be applicable across the country for all power companies, including KE, but all residential consumers under monthly consumption of 200 units would remain protected from the price hike through subsidy, Dawn had reported at the time.

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