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Government Welcomes NEPRA’s Cut in K-Electric Tariff, Says Move Will Ease Burden on Taxpayers
Govt hails NEPRA’s decision to slash K-Electric’s tariff by Rs7.6/unit, calling it a step toward reducing taxpayer burden and curbing inefficiencies.
ND
by News Desk
2025-10-27
Government Welcomes NEPRA’s Cut in K-Electric Tariff, Says Move Will Ease Burden on Taxpayers

Islamabad | October 27, 2025 — The government on Monday praised the National Electric Power Regulatory Authority (NEPRA) for its recent decision to reduce K-Electric’s multi-year tariff, saying the move would lessen the “additional burden on taxpayers” while ensuring consumer protection in Karachi.

Last week, NEPRA reduced K-Electric’s tariff for FY2023–24 by Rs7.6 per unit, from Rs39.97 to Rs32.37, citing inefficiencies in the company’s operations. K-Electric, however, warned that the revision could have “far-reaching consequences” for its consumers and investors.

Following the announcement, shares of K-Electric fell sharply at the Pakistan Stock Exchange, and reports emerged that the utility’s foreign owners were considering legal action against the government.

In response, the Ministry of Energy’s Power Division dismissed these reports as part of a “malicious campaign”, clarifying that NEPRA’s decision was not against Karachi’s electricity users.

“The reality is the exact opposite. The decision will reduce inefficiencies, ensure fairness among power distributors, and lessen the fiscal burden on taxpayers,” the Power Division said in its statement.

According to the ministry, K-Electric had previously been compensated through federal subsidies to offset its operational losses. The revised tariff structure, it said, will encourage efficiency and prevent losses from being passed on to consumers.

It added that the decision would remove disparities between K-Electric and public-sector distribution companies and ensure uniform electricity rates across Pakistan.

The Power Division further noted that there was no risk of load-shedding in Karachi, as cheaper and sufficient power was already available through the national grid, and infrastructure was in place to meet the city’s demand.

The ministry also welcomed NEPRA’s decision to end dollar indexation in K-Electric’s rate of return and exclude idle power plants from capacity-related charges, saying it would prevent “unfair costs from being transferred to the public.”

“No entity will be able to extract unverified or unjustified profits from citizens. Regulators will continue to uphold the law and protect the public interest,” the statement concluded.
Tagged:

NEPRA

Kelectric

ElectricityTariffs

PakistanPowerSector
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