K-Electric’s controversial power procurement decisions have once again burdened Karachi’s electricity consumers.
According to documents from the National Electric Power Regulatory Authority (NEPRA), K-Electric (KE) purchased electricity from Independent Power Producers (IPPs) in December 2024 at nearly double the cost instead of sourcing cheaper power from the National Transmission & Dispatch Company (NTDC).
As a result, Karachi’s electricity consumers received ₹2 per unit less relief in their monthly fuel adjustment.
The NEPRA report reveals that KE used only 985 MW from NTDC instead of the allocated 1,600 MW. The remaining electricity was generated through its own power plants and purchased from IPPs at a staggering ₹18.63 per unit, whereas the national grid supplied electricity at just ₹9.60 per unit.
The move has been termed a violation of the merit order, as KE ignored cheaper power options and instead increased dependence on its own expensive power generation. Additionally, RLNG procurement further escalated costs, leading to reduced relief for Karachi’s consumers.
Due to KE’s decisions, consumers in Karachi received only Rs3 per unit relief in fuel adjustment for December 2024, instead of the expected ₹5 per unit.
In response, NEPRA has recommended that NTDC conduct a system study to assess the situation and ensure efficient power distribution in the future.
