The federal government has strongly opposed K-Electric’s request for a 13.9% increase in electricity tariffs for Karachi residents, calling the proposed hike unjustified and harmful to public interest.
Federal Minister for Energy Sardar Awais Ahmed Khan Leghari, speaking in the Senate on Thursday, responded to a calling attention notice by MQM Senator Faisal Subzwari, and declared that the government instead supports a reduction in tariffs to eight or nine percent.
“We believe the tariff should be reduced to eight or nine percent,” Leghari asserted, arguing that such a revision would shield consumers from worsening economic pressure amid already high energy costs.
The minister projected that this proposed reduction could save consumers nearly Rs6,500 billion over the next seven years, highlighting the financial impact of resisting K-Electric’s demand. He noted this was the first time a tariff petition had been formally challenged, indicating a new era of accountability in regulatory decisions.
Leghari also condemned K-Electric’s attempt to recover defaults from compliant consumers, calling the practice inequitable and against the principles of fair billing. He pointed out that the federal government had already disbursed Rs175 billion in tariff differential subsidies to K-Electric in the previous fiscal year, ensuring continued affordability and uninterrupted electricity supply in the city.
In a significant consumer relief development, Leghari revealed that Rs100 billion in overbilled amounts had been refunded, and that ongoing reforms under the current administration had led to a record Rs191 billion reduction in power sector losses.
Meanwhile, Senator Faisal Subzwari questioned the National Electric Power Regulatory Authority (NEPRA) over its handling of line losses, criticizing the body for allegedly allowing K-Electric to pass on the financial burden to consumers without holding public hearings. He claimed NEPRA permitted recoveries without proper oversight.
Leghari dismissed the allegations, clarifying that the concerns cited by Senator Subzwari were based on an audit report from the previous government, not the current administration’s tenure. He reiterated the government’s commitment to protecting consumer rights and enhancing transparency in the power sector.
As NEPRA continues to assess the tariff petition, the government’s opposition reflects a broader stance aimed at limiting price shocks and ensuring fair treatment for electricity users, particularly in Karachi.
