Good news for Karachi, as NEPRA announces electricity price cut

National Electric Power Regulatory Authority (NEPRA) has authorized a reduction in electricity prices under the fuel charges adjustment for the month of August of Rs4.87 per unit.

On Thursday, According to media reports, people of Karachi who have been paying high electricity bills despite frequent power outages under the guise of load-shedding, the clearance issued during the hearing of a case for fuel costs adjustment requisitions was good news.

NEPRA Chairman Tauseef H Farooqi was informed that the KE had submitted a petition for a Rs 4.21 per unit reduction in the price of energy during the hearing.

KP member of NEPRA, Engineer Maqsood Anwer, responded by claiming that while the firm purchases power from the national grid at a reasonable cost, it generates electricity on-site at a significant cost.

Farooqi responded by saying that the KE is generating its own power at a cost of more than Rs37 per unit while also acquiring electricity from the national grid for Rs13.61 per unit.

He questioned how a firm can anticipate a price reduction in this circumstance, saying that KE is generating power for an extra Rs24 per unit as compared to the national grid.

Anwer said that if KE reduced the cost of power generation at its end, customers would benefit by Rs6 per unit of electricity.

The NEPRA chairman then gave the KE executives the order to work toward cheaper power generation.

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