ISLAMABAD: The Power Division rejected claims that NEPRA’s recent multi-year tariff review for K-Electric harms Karachi consumers. Officials said such claims are misleading. The review aims to ensure fairness, accountability, and protection for electricity users.
According to the spokesperson, K-Electric must improve operational efficiency like public-sector utilities such as IESCO, FESCO, and GEPCO. The review focuses on KE’s management, operational losses, and cost control, not raising consumer rates. Currently, KE purchases about 2,000 megawatts from the national grid, which is cheaper than generating power from its own plants.
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Officials explained that NEPRA capped KE’s profits to a reasonable level and removed the dollar linkage. Consumers will continue receiving government subsidies, but taxpayer money will no longer cover KE’s inefficiencies. Only genuine, verifiable losses now appear in bills, preventing arbitrary charges and unnecessary financial burdens on consumers.
The Power Division added that NEPRA’s decision to retire idle KE plants will reduce fixed costs without affecting electricity supply. Independent consultants confirmed that KE had failed to curb losses despite heavy spending. The move encourages efficiency and aligns KE with state-run DISCO standards.
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In conclusion, officials called the review a milestone in regulatory reform. It protects Karachi consumers, reduces taxpayer burden, promotes transparency, and ensures fair treatment across the electricity sector.