K-Electric, Pakistan’s sole electricity provider for Karachi and its adjoining areas, has submitted a petition to the National Electric Power Regulatory Authority (Nepra) requesting a tariff reduction of Rs4.84 per unit for its consumers, effective for the month of February 2025. The move, announced in a regulatory filing and reported by local business outlets, aims to provide financial relief to Karachi residents amid rising electricity costs, marking the utility’s third consecutive request for a negative fuel cost adjustment (FCA) in recent months.
The petition, filed on March 12, 2025, seeks to adjust the tariff based on lower fuel costs incurred in February, which K-Electric claims will result in a Rs7.17 billion relief for its customer base if approved, as detailed in a company statement. This follows previous FCA reductions of Rs0.16 per unit for September 2024 and Rs0.27 per unit for October 2024, reflecting efforts to align tariffs with actual fuel expenses, as noted in recent reports.
K-Electric’s request is part of its ongoing multiyear tariff (MYT) review, which remains under consideration by Nepra. The utility, which generates, transmits, and distributes electricity to over 3.1 million customers in Karachi, argued that the proposed cut adheres to economic merit order principles, ensuring efficient power dispatch from its plants and procurement from external sources, including the national grid, as outlined in its submission.
If approved, the Rs4.84 per unit reduction would lower electricity bills for Karachi consumers, offering much-needed relief amid Pakistan’s economic challenges, including inflation and high energy costs. However, the adjustment is provisional, pending finalization of K-Electric’s MYT, which has faced delays due to regulatory scrutiny and circular debt issues plaguing the country’s power sector, as reported by international news agencies.
Nepra is expected to hold a public hearing to evaluate K-Electric’s petition, examining whether the utility adhered to cost-efficiency standards in February 2025. The regulator’s decision will also consider the impact of uniform tariff policies, where any relief might be offset by the federal government’s Tariff Differential Subsidy, as stated in K-Electric’s tariff structure details.
K-Electric, the only listed electricity supplier in Pakistan and majority-owned by an offshore holding company, has been navigating financial and regulatory hurdles since its privatization in 2005. Its latest petition comes amid discussions of potential acquisition by China’s Shanghai Electric, delayed by legal and regulatory challenges, as noted in earlier reports. The company’s focus on tariff adjustments reflects its commitment to balancing operational costs with consumer affordability, particularly in a city where electricity demand remains high.
For Karachi residents, a successful tariff cut could ease the financial burden of rising utility bills, but the outcome hinges on Nepra’s review and government policies. Consumers are advised to monitor updates on K-Electric’s website and Nepra’s announcements for the final decision, expected in the coming weeks.
