The regulator is set to allow introducing amendment in tariff structure for power distribution companies including K-Electric (KE).
The plan includes the introduction of revised fixed charges and a rebalancing of variable rates in line with revenue requirements already determined for DISCOs.
If approved, the changes would not alter the overall subsidy envelope but could redistribute costs among consumer categories, potentially increasing fixed charges while adjusting per-unit rates.
Pakistan’s power regulator will hold a public hearing next week on a federal government proposal to rationalize electricity tariffs across state-run distribution companies and K-Electric, a move that could reshape power bills nationwide by revising fixed charges and adjusting variable rates without increasing the overall subsidy burden.
The National Electric Power Regulatory Authority (NEPRA) said the hearing will take place on Feb. 10 to consider the government’s motion and policy guidelines aimed at introducing a uniform tariff structure for ex-WAPDA DISCOs and K-Electric, under provisions of the NEPRA Act and tariff rules.
According to the motion, the government wants NEPRA to revise the applicable uniform tariff while staying within the already approved consolidated revenue requirement of the power sector and the budgeted tariff differential subsidy of Rs249 billion. The proposal seeks to better reflect the underlying cost structure of the sector, particularly the recovery of fixed costs, which have increasingly weighed on utilities’ finances.
The cabinet has already approved the uniform tariff framework, and the government has submitted it to NEPRA for formal incorporation into the regulator’s schedule of tariffs. The plan includes the introduction of revised fixed charges and a rebalancing of variable rates in line with revenue requirements already determined for DISCOs.
For K-Electric, the government has asked NEPRA to reconsider and issue a modified uniform tariff to maintain parity across the country, while ensuring the utility recovers its approved revenue requirement. The proposal also allows for targeted subsidies or cross-subsidies to be notified through amendments in existing statutory regulatory orders.
If approved, the changes would not alter the overall subsidy envelope but could redistribute costs among consumer categories, potentially increasing fixed charges while adjusting per-unit rates.
NEPRA said the hearing will be held both online and at its Islamabad headquarters, allowing consumers, industry stakeholders and other affected parties to submit written comments or present views during proceedings.
