K-Electric tariff increase

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In a deeply troubling move that has rightly sparked political outrage across party lines, Nepra has approved K-Electric's multi-year tariff that allows the utility to recover a staggering Rs50 billion in write-off losses from consumers. This decision, which effectively permits K-Electric to pass on the cost of unpaid bills and inefficiencies to its paying customers, raises serious questions about the priorities and regulatory philosophy of Nepra.

That both the treasury and opposition benches in the Sindh Assembly stood united in condemning the move is telling. Rarely do provincial legislators find common ground on economic matters, but in this instance, the sheer injustice of the decision appears to have bridged political divides. It is not difficult to see why. In a city already reeling from record inflation and inconsistent electricity supply, saddling ordinary citizens with the burden of corporate write-offs amounts to little more than injustice.

The justification, ostensibly, lies in ensuring K-Electric's financial viability and long-term service delivery. Yet this line of reasoning is difficult to defend when viewed against the company's consistent failure to control transmission losses, curb theft and improve recovery. That a private, profit-making entity can recover its losses from a captive consumer base — without showing commensurate accountability or performance — is emblematic of the regulatory capture and policy drift that plague Pakistan's energy sector. More broadly, the decision sets a dangerous precedent. If utilities are allowed to routinely offload their losses like this, there remains little incentive for reform or efficiency.

Nepra must revisit its decision and hold K-Electric to higher standards of transparency and fiscal responsibility. The answer to chronic power sector woes cannot lie in continuously penalising the consumer.