Islamabad, 29 May 2025: K-Electric has come under renewed scrutiny as Federal Power Minister Awais Leghari expressed deep reservations about recent regulatory decisions made by the National Electric Power Regulatory Authority (NEPRA).
He cautioned that these rulings could have lasting consequences on electricity pricing and the scale of government subsidies.
According to the Power Ministry, NEPRA’s determinations involve multiple aspects of K-Electric’s operations, including its generation, transmission, distribution, and retail supply licenses.
The decisions also impact the utility’s proposed investments under the upcoming multi-year tariff framework.
READ MORE: NEPRA Lowers Electricity Rate for K-Electric Consumers
Tariff and Licensing Rulings Under Review
Minister Leghari conveyed that his ministry is currently evaluating NEPRA’s recent rulings on transmission, distribution, and supply aspects of the utility’s business.
He noted that a previous plea filed in December 2024 seeking a reassessment of the generation tariff remains unresolved, raising concerns about potential delays in stabilizing the financial structure of the power sector.
The Minister warned that unresolved regulatory issues may have broader repercussions, including increased costs for end users and rising fiscal strain on the federal government’s uniform tariff support mechanism.
Risks to Investment and Regulatory Credibility
Leghari underscored the importance of addressing these issues promptly, warning that any continued regulatory uncertainty could damage investor confidence in the energy sector. This, he said, may deter much-needed private investment in electricity distribution networks.
READ MORE: K-Electric Proposes Another Power Tariff Hike
He stressed that a weakened regulatory framework could hurt consumers directly by affecting price stability and service quality. If these concerns remain unaddressed, it might also limit the government’s capacity to attract partnerships essential for modernizing the power grid.
The situation involving K-Electric, the country’s only vertically integrated power utility, remains critical as the government weighs its next steps to safeguard consumer interests and ensure sustainable energy governance.
K-Electric continues to play a central role in Pakistan’s urban energy supply chain, particularly in Karachi, and the outcome of this regulatory standoff is likely to set a precedent for future sector reforms.
