ISLAMABAD: The Minister for Power, Sardar Awais Ahmad Khan Leghari has announced that the federal government will file a review petition with Nepra regarding K-Electric’s tariff, emphasizing that companies should generate profits through efficiency — not subsidies or charitable support.
His statement came a day after he took to X and raised several questions about NEPRA’s recent determination regarding K-Electric.
On Thursday, speaking to the media after addressing an energy workshop organized by the Centre for Economic Research in Pakistan (CERP), Leghari said the Power Division is preparing the petition to ensure that neither the federal government nor electricity consumers face undue financial pressure.
Nepra’s decisions on KE tariffs: Power Div. flags potential consumers harm, urges revision
“We are moving towards privatization and K-Electric — like other private investors—should earn profits based on performance,” he said. “Handouts are not a sustainable model; efficiency must take precedence. Regulatory laws must be enforced in all distribution companies (DISCOs).” KE’s approved tariff is 18 per cent higher than previously approved Multi-Year Tariff.
Responding to a question, Leghari said the Power Division would ask Nepra to ensure fair pricing for consumers. “The burden of K-Electric’s current tariff structure is being carried by consumers of other distribution companies through cross-subsidization and taxes,” he noted.
“We hope Nepra will make decisions that benefit both the country and its people,” he added.
On net metering, the minister said the policy has been revisited and stakeholder consultations have been conducted. “If approved, the revised net metering policy will be implemented within a month,” he stated.
Leghari also highlighted reductions in electricity costs: “Electricity prices have decreased by 31% for the industrial sector and by 50% for 18 million household consumers.” However, he acknowledged that climate change has led to a drop in hydropower generation, forcing reliance on more expensive sources. “The Fuel Price Adjustment (FPA) varies monthly, but overall, electricity prices in Pakistan have declined,” he said.
On the circular debt issue, Leghari revealed that the government plans to borrow from banks to eliminate the mounting circular debt soon.
Earlier, while addressing the workshop, the minister said the Prime Minister will soon announce a new industrial tariff policy aimed at enhancing competitiveness. He reiterated the government’s commitment to renewable energy, noting that 3,000 megawatts of furnace oil-based generation power plants have shut down in recent months.
Leghari expressed the view that the government’s aim is to reduce power tariffs on a sustainable basis. He stated that a revolution in alternative energy sources has arrived in Pakistan adding that solar energy is a promising source and that there has been an increase in solar energy production.
“In the past, estimates in the energy sector were not realistic,” he added. “We have been conducting research and analysis in the energy sector for the past year. We are reviewing agreements with IPPs (Independent Power Producers) and trying to detach the government from purchasing electricity in the future,” he said.
The minister further stated that the inclusion of the Bhasha Dam in the electricity system will be significant. “We are trying to ensure that consumers do not suffer due to poor planning in the electricity system,” he said.
“Reforms are being made in the transmission system. We lack the technology to assess the pressure on transformers and feeders,” he added, noting that the government is working to ensure coal and gas-powered plants do not impact the environment. “There is ample electricity available through the grid over the next three years,” he said.
Copyright Business Recorder, 2025
Comments
Comments are closed.