ISLAMABAD: K-Electric (KE) CEO Moonis Alvi expressed willingness to revise the company’s proposed multi-year tariff during ongoing discussions with the National Electric Power Regulatory Authority (Nepra). He emphasized the need for a sustainable tariff structure to support investments in Pakistan’s power sector while addressing consumer concerns.
Speaking on Geo Television’s “Aaj Shahzeb Khanzada Kay Sath,” Alvi stated, “We are open to healthy debate and ready to adjust any abnormal elements in the tariff.” He highlighted that the proposed tariff of Rs44.69/unit for 2024–2030, filed two years ago, reflected a higher interest rate at the time, which has since declined, potentially lowering the tariff.
The federal government has opposed the hike, calling it an unjust burden on Karachi’s consumers. A government advisory to Nepra recommended reducing the base tariff to Rs34.87/unit by revising cost assumptions, debt calculations, and recovery loss allowances. The advisory also urged KE to adopt a “take-and-pay” model for 20% of its generation contracts and increase reliance on the national grid to lower generation costs.
Minister for Power Awais Ahmad Khan Leghari supported Alvi’s concerns, stressing the importance of a balanced tariff for sustaining KE and the broader Disco sector. “Privatisation will fail if companies cannot recover costs sustainably,” he warned, citing ongoing sector reforms, including lower industrial tariffs and circular debt reduction.
Both Alvi and Leghari agreed that any tariff must fairly address operational costs, consumer affordability, and investor returns to avoid long-term crises in the power sector.
Story by Israr Khan
