Minister for Power Awais Ahmad Khan Leghari announced that the government will file a review petition with the National Electric Power Regulatory Authority (Nepra) to reassess K-Electric’s tariff structure. The move comes as part of the government’s effort to ensure fair electricity pricing and operational efficiency in the power sector.
Speaking after a workshop on power sector reforms, Leghari emphasised that power companies should generate profits through improved efficiency rather than subsidies or charitable support. He said the government is committed to preventing undue financial strain on both the federal budget and electricity consumers.
Leghari highlighted the government’s push towards privatisation, stating that K-Electric and other investors must earn profits based on performance and efficiency. He stressed the need for stricter enforcement of regulatory frameworks for distribution companies (DISCOs) to protect consumer interests.
The minister said the government will approach Nepra to ensure electricity prices remain reasonable, pointing out that K-Electric’s tariff burden is indirectly borne by consumers of other DISCOs through taxes. He expressed hope that regulatory decisions would balance the interests of the nation and its consumers.
On the net metering front, Leghari noted that stakeholder consultations have concluded and a revised policy is ready. He promised implementation within a month once approved.
Addressing climate challenges, the minister said that reduced hydropower generation due to climate change has increased reliance on costlier electricity sources, leading to monthly fluctuations in the fuel cost adjustment (FCA). Despite this, he pointed out significant reductions in electricity prices—31 percent for industry and 50 percent for nearly 18 million households.
Regarding the growing circular debt, Leghari revealed plans to borrow from banks to address the issue. He assured that electricity supply for the grid will remain sufficient over the next three years, crediting recent reforms for providing consumer relief.
He denied any recent increase in electricity tariffs, noting a 30 percent reduction in industrial rates over the past year and reaffirming the government’s commitment to sustainable long-term tariff decreases.
Leghari described Pakistan’s energy sector as undergoing a renewable revolution, with expanded solar power production and ongoing reviews of independent power producer agreements contributing to declining electricity prices.
He criticised previous unrealistic energy sector planning and emphasised the government’s goal of separating itself from future electricity procurement decisions. The inclusion of the Bhasha Dam into the power system was highlighted as a key forthcoming development.
Efforts are also underway to modernise the transmission sector and protect the environment from the impact of coal- and gas-fired power plants.
Responding to questions, Leghari said the cabinet has ordered a review of the net metering policy, with further stakeholder consultations planned before final approval and implementation.
