
In an indication of its commitment to addressing troubled citizens' woes, the government has downplayed K-Electric’s (KE) plea for a multi-year tariff hike.
Taking a rigid stance against it, the government dubbed the proposed hike as inflated and unjustified burden on the power consumers of Karachi.
The National Electric Power Regulatory Authority (Nepra) has instead been advised to bring KE’s proposed a multi-year base tariff from Rs44.69 per unit to Rs34.87 per unit after certain cost adjustments.
Citing sources familiar with the matter, The News reported that the Power Division, in the advisory issued to the power regulator, accused KE of overstating its costs, estimating excessive investments, and justifying its calculations with outdated financial assumptions.
The publication cited a document pointing to the likelihood of KE's lawsuit shrinking significantly without taking a toll on its operational capacities.
“The inflated costs presented by KE indicate a lack of consumer-focused planning. Our recommendations aim to introduce fairness and operational efficiency in KE’s practices while providing much-needed relief to consumers,” said a Power Division official.
As it stands, the government's decision in favour of KE consumers will also drive down the federal government's burden, as pays each year hundreds of billions to provided relief to the power consumers in Karachi and retain a unified tariff, since the exorbitant power generation cost of KE is in multiples compared to that of the country.