Power Minister to Review K-Electric Tariffs

Power Minister to Review K-Electric Tariffs

| 30-May-2025

Islamabad, May 31Minister for Power Awais Ahmad Khan Leghari revealed that the government will file a review petition with the National Electric Power Regulatory Authority (Nepra) to reassess K-Electric’s tariff structure, aiming to ensure fair pricing and operational efficiency in the power sector. Speaking post a workshop on power reforms, he demanded power companies earn profits through efficiency, not subsidies or charity, vowing to shield the federal budget and consumers from financial strain.

Leghari pushed privatisation, urging K-Electric and investors to thrive on performance, with stricter enforcement of regulatory frameworks for distribution companies (DISCOs) to safeguard consumer interests. He highlighted Nepra’s role in keeping electricity prices reasonable, noting K-Electric’s tariff burden shifts to other DISCO consumers via taxes. On net metering, a revised policy is ready, set for implementation within a month post-approval, following stakeholder consultations.

Addressing climate challenges, Leghari cited reduced hydropower and costlier sources driving fuel cost adjustment (FCA) fluctuations, yet boasted 31% industrial price cuts and 50% reductions for 18 million households. To tackle circular debt, he proposed bank borrowing, assuring sufficient grid supply for three years due to recent reforms. He denied recent tariff hikes, citing a 30% industrial rate drop yearly, and hailed a renewable revolution with expanded solar and Bhasha Dam integration, while slamming past unrealistic planning.

Web context reveals Pakistan’s power sector debt (e.g., Rs2.5 trillion, web ID: 0), while posts found on X show mixed views—some praise price cuts, others doubt sustainability. Critically, the narrative of “reform” may mask structural flaws—web sources note transmission losses, and X sentiment suggests skepticism about debt solutions, hinting at long-term challenges.

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