Confusion over KESC tariff hike

Published October 10, 2008

ISLAMABAD, Oct 9: The ministry of water and power has clarified that the Karachi Electric Supply Company (KESC) has not been authorised to increase tariff by 71 per cent. The statement came in the wake of media reports to this effect.

The KESC has already raised its tariff by 31 per cent, bringing its rates at par with the rest of the country.

Reports about a 71 per cent increase were based on incorrect figures, it stated.

As per the automatic tariff adjustment, the National Electric Power Regulatory Authority (Nepra) had given two quarterly adjustments, for January-March and April-June this year.

Both the adjustments have now been passed on to consumers vide a notification issued by the Ministry of Water and Power on Saturday last.

Shamim-ur-Rahman adds from Karachi: The tariff hike was allowed despite a mandatory ban imposed on the KESC for seven years at the time of its sell-off.

According to media reports, the 70 per cent increase will be effective retroactively from Sept 1. Consumers using up to 100 units will have to pay Rs4.97 per unit excluding tax while those consuming 101 to 300 units will have to pay Rs6.13 per unit, those utilising 301 to 1,000 units will have to pay Rs8.58 per unit and the people consuming more than 1,000 units will have to pay Rs9.80 per unit.

Following the issuance of SRO 1042 (1) 2008, consumers using up to 100 units will have to pay around Rs700, including taxes. Thus, the burden on consumers will almost be doubled than their current bills. Commercial consumers using up to 100 units would pay Rs9.93 per unit while those consuming 100 to 300 units would pay Rs10.04 per unit.

Industrial consumers utilising 400 megawatts off-pack will have to pay Rs8.05 per unit while those using full pack will have to pay Rs8.15 per unit.

There shall be minimum monthly charge even if no energy is consumed. It will be Rs45 for a single-phase connection and Rs100 plus Rs25 per KW for load in excess of 5kw for a three-phase connection.

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