K-Electric has once again been allowed to draw more money from Karachiites’ pockets than any other distribution company (Disco) in the country
By our correspondent
KARACHI: The National Electric Power Regulatory Authority (NEPRA) has given its nod to a significant revision in K-Electric’s power supply tariff, setting an average rate of Rs39.97 per unit for the fiscal year 2023-24. The decision, which marks an 18 percent jump from the earlier rate of Rs33.82, comes as part of a long-term framework spanning seven years—from 2023-24 to 2029-30—aimed at reshaping the utility’s financial and operational footing.
But the move is already fueling concerns that Karachi’s residents will shoulder a disproportionate burden compared to electricity consumers elsewhere in the country. This latest approval follows NEPRA’s earlier ruling on K-Electric’s transmission and distribution tariffs, effectively replacing a multi-year arrangement that had expired on 30 June 2023.
Though framed as a regulatory necessity, the new structure is being criticized by energy watchers and citizen groups who argue that K-Electric has once again been allowed to draw more money from Karachiites’ pockets than any other distribution company (Disco) in the country. The numbers underscore the gap. With K-Electric’s newly set tariff standing at Rs39.97 per unit, sources familiar with the sector point out that it is 34 percent higher than the Rs29.78 base tariff currently applicable to other Discos.
Even a glance at NEPRA’s own breakdown confirms the upward pressure. Of the new unit cost, Rs31.96 is attributed to power purchase expenses, Rs2.86 to transmission, Rs3.31 to distribution, and Rs2.28 to a supply margin. An additional 44 paisa per unit has been tacked on to cover legacy adjustments. In what might appear to be an attempt to soften the blow, NEPRA has clarified that these revised figures will not be directly passed on to consumers.
In keeping with national policy, electricity rates are to remain uniform across the country, meaning the federal government will bridge the gap by subsidizing the differential for K-Electric’s customers. Still, the reassurance rings hollow for many, particularly in Karachi, where grievances against K-Electric’s performance run deep. The utility’s track record on outages, billing complaints, and customer service has long been a source of friction.
Critics argue that pouring more money into the system—especially through a subsidized structure—without tangible service improvements will only embolden inefficiency. K-Electric has been instructed to improve its recovery rate, which now must climb from 93.25 percent to 96.50 percent over the tariff period.
