KARACHI – The National Electric Power Regulatory Authority (NEPRA) has slashed K-Electric’s average tariff by Rs7.6 per unit, dropping it from Rs39.97 to Rs32.37. The drastic reduction, effective immediately, has sparked alarm within the company, which warned of “far-reaching consequences” for its operations and investors.
The revised tariff covers K-Electric’s multi-year framework for FY2024–2030, including power generation, transmission, and distribution. NEPRA has also tightened performance targets, lowering annual transmission loss allowances to 0.75% and capping distribution losses at 9%.
K-Electric claims the decision could affect its capacity to maintain infrastructure, fund ongoing projects, and ensure reliable power for millions of Karachi consumers. Analysts fear the cut may stall investment and strain Pakistan’s largest private utility at a time of rising energy demands.
This story has been reported by PakTribune. All rights reserved.