NEPRA Tariff Cut Sparks Karachi Power Crisis Warning

KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has raised concerns over NEPRA’s decision to cut K-Electric’s average tariff. The regulator reduced the tariff from Rs 39.97 to Rs 32.37 per unit, which the chamber fears could trigger prolonged load-shedding and worsen Karachi’s ongoing power crisis. KCCI urged the government to review the decision to ensure uninterrupted electricity for households and industries.

The tariff reduction followed NEPRA’s detailed review of K-Electric’s Multi-Year Tariff (MYT) for FY2024–FY2030. The review included KE’s generation, transmission, distribution, and supply businesses, as well as its Transmission and Distribution Investment Plan. NEPRA also assessed losses for the 2024–2030 period and reviewed KE’s write-off claims for 2017–2023.

NEPRA confirmed its stance on KE’s Rs 50 billion write-off claims but amended several tariff-related areas. The regulator directed K-Electric to adjust its system according to regulatory requirements and increase reliance on low-cost national grid electricity. The authority also approved shutting down KE’s SGTPS and KGTPS plants from September 23, 2025, and their tariffs will be discontinued after the next gazette notification.

K-Electric warned that the tariff reduction is “not sustainable for the company” and could have “far-reaching consequences” for both the utility and consumers. The company stated it is reviewing the decision and will explore legal and regulatory remedies. KE stressed that the changes could affect the company’s financial stability if implemented as planned.

KCCI emphasized that the tariff cut might disrupt Karachi’s fragile electricity supply. The chamber called for immediate government intervention to prevent blackouts and ensure reliable power. Officials also warned that businesses could face losses, and households may experience irregular electricity availability if the decision proceeds without proper planning.

Read More : NEPRA Fines Government Electricity Distribution Companies

The National Electric Power Regulatory Authority (NEPRA) has imposed a total fine of 140 million PKR on three government electricity distribution companies. NEPRA fines government electricity distribution companies to address poor performance and ensure better service for electricity consumers across Pakistan.

The three companies penalized are Gujranwala Electric Power Company (GEPCO), Quetta Electric Supply Company (QESCO), and Faisalabad Electric Supply Company (FESCO). These companies are responsible for electricity distribution in their respective regions.