The National Electric Power Regulatory Authority (NEPRA) is anticipated to hold a public hearing this week regarding the tariff increase. Following the hearing, a notification will be issued to finalize the proposed adjustment.
According to sources, K-Electric’s Saudi shareholder raised the tariff issue at the highest level, briefing the Special Investment Facilitation Council (SIFC) and the prime minister. Federal Finance Minister Muhammad Aurangzeb has also been informed about the proposed revision.
The proposed multi-year tariff adjustment is expected to attract foreign investment in K-Electric. However, this could create a significant tariff gap between K-Electric and other distribution companies (DISCOs), potentially reaching Rs12 per unit. Additionally, the government’s subsidy to bridge the tariff difference for K-Electric consumers is expected to increase, putting additional strain on public finances.
