The Economic Coordination Committee (ECC) has approved a proposal to establish a single, uniform electricity tariff framework for the entire country, including Karachi’s K-Electric. The committee directed that the new arrangement be thoroughly reviewed after one year of implementation to assess its impact. This move is a significant step towards integrating the country’s fragmented power sector under the National Electricity Policy.
The Power Division informed the ECC that the National Electric Power Regulatory Authority (Nepra) is working on creating a single system operator with a unified basket, a process expected to take one to two years to fully integrate K-Electric with the state-run distribution companies (DISCOs). To achieve tariff uniformity, the ministry proposed aligning the Power Purchase Price Adjustments (PCAs) across the sector, while fuel charge adjustments would continue to be calculated separately for K-Electric and DISCOs based on their individual generation costs.
Nepra maintained that any consumer-end price uniformity must be policy-driven and supported by government subsidies or cross-subsidies. The Finance Division endorsed the overall proposal but advised a cautious approach, stressing that the effects of shifting to a single dispatch model must be carefully examined. The Power Division also clarified that while K-Electric is entitled to draw 1,000 MW from the national grid, its current offtake has risen to 1,600 MW, constituting over 65% of its power supply.
The proposal has faced opposition from consumer groups. During a recent public hearing, interveners argued against applying a uniform fuel adjustment charge to K-Electric, warning that it would deprive the utility’s consumers of the monthly relief they currently receive under the existing, separate calculation mechanism. This highlights the challenge of balancing policy integration with the protection of consumer interests.
