NEPRA’s decision blocks fuel adjustment relief for Karachi consumers, says KCCI President

Muhammad Javed Balwani criticized both NEPRA and K-Electric for failing deliver promised benefits to consumers

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The recent decision by the National Electric Power Regulatory Authority (NEPRA) has denied Karachi’s electricity consumers significant relief in their monthly electricity adjustment, drawing strong criticism from the Karachi Chamber of Commerce & Industry (KCCI).

KCCI President Muhammad Javed Balwani condemned NEPRA’s ruling, stating that it deprived Karachi’s consumers of much-needed relief. He criticized both NEPRA and K-Electric (KE) for failing to deliver the promised benefits to consumers.

Limited fuel price adjustment

According to NEPRA’s latest announcement, the fuel price adjustment for November resulted in a reduction of only PKR 1.23 per unit. While Balwani acknowledged this as a step in the right direction, he noted that it fell far short of expectations. Karachi’s electricity consumers had anticipated a reduction of PKR 4.98 per unit, as initially requested by KE.

He further highlighted that based on the tariff adjustment calculations, the reduction should have been PKR 5.0029 per unit. However, KE customers only received a minor reduction, depriving them of approximately PKR 5.444 billion in collective relief.

Financial burden on consumers

Balwani emphasized that Karachi’s residents and businesses are already struggling with rising living costs and soaring operational expenses. The failure to pass on the full relief has added to their economic hardships.

He also accused NEPRA of failing to fulfill its mandate of protecting consumer rights by not ensuring the complete transfer of benefits. Additionally, he criticized KE for taking advantage of unnecessary delays in tariff reductions, showing little concern for the financial strain on Karachi’s population.

NEPRA’s internal dissent and call for accountability

Balwani pointed to NEPRA’s Member Tariff, Mathar Niaz Rana, who had opposed the decision, arguing that Karachi consumers should have received the full PKR 5.0029 per unit adjustment. According to Rana, this would have resulted in direct financial relief of over PKR 7.215 billion. His stance was backed by Member Technical, Rafiq Sheikh, who also opposed the minimal adjustment given to KE consumers.

KCCI fully supported Rana’s dissenting opinion, calling it a true representation of Karachi’s business community and consumers. Balwani also questioned why PKR 8.7 billion remains under NEPRA’s consideration, stating that withholding these funds is both unjust and concerning.

Demand for immediate measures

The KCCI has urged both NEPRA and KE to take immediate corrective measures to ensure that the full tariff adjustment benefit reaches consumers without further delay.

Additionally, the chamber has called for greater accountability in the regulatory process to safeguard consumer rights amid Pakistan’s challenging economic conditions.

“We demand that NEPRA and KE not only rectify this decision but also ensure that all future adjustments are transparent and fair,” Balwani asserted. “Karachi’s citizens and business community deserve better, and we will continue to fight for their rights.”