Nepra defends KE tariff ruling after minister’s criticism

ISLAMABAD: Nepra Chairman Waseem Mukhtar on Thursday responded to Power Minister Awais Leghari’s criticism of K-Electric’s tariff determination, saying during a public hearing, “We’ve given our decision, now it’s up to the minister to respond.” The remarks came during the monthly fuel charges adjustment (FCA) hearing, where the Central Power Purchasing Agency (CPPA-G) sought to increase April’s power tariff by Rs1.27 per unit.

The minister had expressed reservations about Nepra’s decision on K-Electric’s multi-year tariff and recently said that the utility’s tariff should be determined based on “efficiency, not charity.”

Awais Leghari had also announced that the Power Division will approach Nepra to seek a review of this decision. The Nepra chairman, responding to a question during the hearing, reiterated the regulator’s stance: “We’ve given our decision, now it’s up to the minister.”

If the regulator approved the CPPA-G’s request, it would translate into Rs12.93 billion additional burden on consumers for April, citing a steep drop in hydropower generation due to reduced water availability.

Officials from the National Power Control Centre revealed that hydropower output fell by nearly one billion units in April. “The decline in hydro generation is the primary driver behind the proposed fuel adjustment,” an NPCC official explained.

Consumers voiced frustration at the growing electricity costs, questioning the government’s commitment to affordability. “Under the prime minister’s plan, electricity was supposed to get cheaper, not more expensive,” one consumer argued during the hearing.

Arif Balwani demanded transparency on the Neelum-Jhelum Hydropower Project, which he said had consumed Rs500 billion. “Should we now offer fateha for Neelum-Jhelum?” he asked pointedly, pressing Nepra on the status of an earlier directive to compile a report on water availability. Nepra officials said only Wapda could provide accurate details on the project.

Despite the requested Rs1.27 hike, CPPA-G official noted the FCA adjustment will apply only for April and will not impact lifeline users, prepaid customers, EV charging stations, or K-Electric consumers.

Responding to a question on the impact of hydropower project shutdowns, CPPA-G’s CEO noted had the Kalabagh Dam been built, Pakistan wouldn’t be facing today’s electricity shortages. “The best-case scenario would have been a functioning Kalabagh Dam,” he said.

Nepra concluded the hearing stating that it had heard all the stakeholders and would issue a final determination after further analysis of the submitted data.