K-Electric adds ‘KMC charges’ in already highly-inflated bills

KARACHI: The K-Electric and the Karachi Metropolitan Corporation (KMC) have signed an agreement pertaining to tax collection in the form of “KMC charges” or “municipal tax.”

A monthly municipal tax amounting to Rs50 has been imposed on the consumption of 200 units of electricity, Rs150 for consuming 200-700 units, whereas Rs200 on the consumption of more than 700 units.

On the other hand, commercial and industrial users will have to pay Rs200 monthly in the form of a municipal tax. Sources familiar with the matter said tax will also be collected for using more than one electricity meter.

In Karachi, at least 2.4 million people will have to pay the municipal tax. According to the agreement signed with the KMC, Rs250 million will be spent by the people of Karachi for paying the newly imposed tax.

K-Electric will be earning at least seven per cent of the recovered amount as commission.

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It is pertinent to mention that if K-Electric does not deposit the recovered money into KMC’s account for two months then the agreement will be termed null and void.

On September 6, the National Electric Power Regulatory Authority (NEPRA) had increased the cost of electricity by Rs3.39 per unit.

According to the details, the NEPRA hearing was held on the application regarding the quarterly adjustment of electricity companies.

After the hearing, the NEPRA had allowed the electricity companies to collect an additional Rs95 billion, which would burden the consumers with Rs 3.39 per unit for three months.

As per the NEPRA’s decision, the additional charges would be collected from October bills.

It may be noted that the increase had been made in the context of the fourth quarter adjustment of 2021-22, under which additional collections from consumers would start from October.