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Nepra Approves Power Tariff Hike for KE and National Consumers

Nepra Approves Power Tariff Hike for KE and National Consumers

The National Electric Power Regulatory Authority (Nepra) approved a power tariff hike for October bills. The increase stands at Rs0.0796 per unit under the monthly Fuel Charges Adjustment (FCA) for August 2025.
This decision affects K-Electric and other distribution companies across the country. The change reflects rising fuel costs faced by power producers during August. Therefore, consumers will see slightly higher bills next month.

Why the Hike Matters

Power companies initially sought a higher increase of Rs0.19 per unit. However, Nepra approved a smaller adjustment to cover only part of the generation cost difference. The new rate applies to most users, except lifeline, electric vehicle charging, and prepaid consumers.
According to Nepra’s technical member, inefficiencies in the power sector remain a major concern. For example, the Guddu 747MW power plant ran on open-cycle mode, adding Rs956 million in extra costs. In addition, Part Load Adjustment Charges (PLAC) reached nearly Rs3.9 billion, worsening financial pressure.
Expert Criticism
System limitations and underuse of the HVDC transmission system further increased expenses. As a result, Nepra faced criticism for transferring these losses to consumers.
In a dissenting note, one technical member opposed the decision. The member argued that shifting billions in inefficiency costs—caused by the National Transmission and Despatch Company (NTDC)—onto consumers was unfair. The note urged urgent reforms to prevent future mismanagement.

What It Means for You

Electricity bills will increase slightly, but experts warn that recurring inefficiencies could lead to more adjustments. Consumers and analysts continue to call for transparency in fuel pricing and operational performance.
In conclusion, while Nepra’s latest move aims to balance costs, it highlights the need for efficiency and accountability in Pakistan’s power sector.

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