MQM Challenges KE Tariff Hike in Sindh High Court

Muttahida Qaumi Movement (MQM) Pakistan has taken legal action against the National Electric Power Regulatory Authority (NEPRA) for approving a tariff mechanism that allows K-Electric to recover theft-related losses and unpaid bills from consumers.

In its petition to the Sindh High Court, MQM argued that NEPRA’s July 18 order unfairly shifts Rs74 billion worth of losses onto honest bill-paying customers. The petition names K-Electric as a respondent and challenges SRO 1287 (I)/2025.

MQM legislator Muhammad Aamir Siddiqui condemned the move, calling it “racketeering” and “hooliganism.” He stressed that Karachi’s residents should not be forced to cover inefficiencies and theft beyond their control.

The party also accused NEPRA of exceeding its authority, noting that even the federal government opposed the regulator’s decision.

MQM warned the tariff burden would hit households, industries, and businesses already struggling in difficult economic conditions, with potentially severe consequences for Karachi’s economy.

Through its legal challenge, MQM is seeking judicial intervention to block the additional tariff charges, framing the issue as both a matter of fairness and consumer protection.

Back in May, NEPRA had approved K-Electric’s request to include unrecovered bills in its consumer tariff.

The regulator had set KE’s base tariff at Rs40 per unit for FY24, nearly 40% higher than the national average of Rs28 for state-run distribution companies.

The new mechanism allowed recovery shortfalls of 6.75% in FY24, gradually reducing to 3.5% by FY30, aligning collection targets with market realities.

KE’s total revenue requirement for FY24 was set at Rs606.9bn, covering 17,768 GWh of power.

NEPRA had justified the decision by citing KE’s financial viability, while the Ministry of Energy opposed the lower recovery benchmarks.