K-Electric has proposed a significant increase in its multi-year tariff from Rs3 to Rs6 per unit. If approved, the average electricity price for K-Electric consumers will rise to Rs47 per unit.
The National Electric Power Regulatory Authority (NEPRA) is expected to hold a public hearing on the matter this week. Following the hearing, a notification will be issued to finalize the proposed tariff adjustment.
Sources reveal that K-Electric's Saudi shareholder raised the tariff issue at the highest level, briefing the Special Investment Facilitation Council (SIFC) and the prime minister on the matter. Federal Finance Minister Muhammad Aurangzeb has also been informed about the tariff revision proposal.
The proposed multi-year tariff is likely to attract investment in K-Electric by foreign companies. The adjustment may widen the tariff gap between K-Electric and other distribution companies (DISCOs) by up to Rs12 per unit. Additionally, the government subsidy to cover the tariff difference for K-Electric consumers is expected to rise, putting further pressure on public funds.
