K-Electric has proposed a substantial increase in its basic power tariff, seeking to raise the rate by Rs10.69 per unit to reach Rs44.69 per unit.

This proposal has been made under the 7-year Multi-Year Tariff (MYT) framework.

Currently, K-Electric’s average basic tariff stands at Rs34 per unit. The utility company has detailed its request, including specific components for the proposed increase. The Energy Purchase Price (EPP) component is to be set at Rs18.88 per unit.


Additionally, transmission charges are projected to be Rs3.48 per unit, and distribution charges at Rs3.84 per unit. Operation and maintenance costs are requested to be Rs0.42 per unit, while the retail margin is sought to be Rs0.59 per unit.

Furthermore, K-Electric has asked for the recovery of lost allocation at Rs2.88 per unit and working capital at Rs2.07 per unit.

The National Electric Power Regulatory Authority (NEPRA) has invited stakeholders to submit their feedback on K-Electric’s request within the next seven days.

A decision on the proposal is anticipated soon. If approved, the new tariff will impact millions of electricity consumers in Karachi and its surrounding areas.

Last month, K-Electric submitted a request for a significant hike of Rs18.86 per unit in the power tariff. This adjustment was based on the Fuel Charge Adjustments (FCA) for seven months, submitted to NEPRA.

Concurrently, K-Electric also requested a reduction in the power tariff by Rs0.29 per unit for a two-month period.

In another development, the federal government has outlined a plan to privatise several profit-making power distribution companies (Discos). The companies slated for privatisation include Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Multan Electric Power Company (MEPCO), and Faisalabad Electric Supply Company (FESCO).

These developments come at a critical time for Pakistan’s power sector, where tariff adjustments and privatisation efforts are expected to have significant implications for both the economy and consumers.