K-Electric Clarifies Tariff Policy Amid Rate Hike Rumors

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K-Electric, Karachi’s primary power utility, has issued a statement clarifying that it lacks the authority to independently revise consumer electricity tariffs, addressing public concerns over rumored price increases.

Karachi, Pakistan – K-Electric (KE), the sole electricity provider for Karachi, has firmly denied claims that it can unilaterally adjust consumer tariffs, responding to growing public speculation about potential rate hikes. In an official statement released on July 31, 2025, KE emphasized that tariff revisions are exclusively determined by the National Electric Power Regulatory Authority (NEPRA) under the federal government’s uniform tariff policy. This clarification comes as residents expressed unease over rising electricity costs amid Pakistan’s ongoing economic challenges.

The company’s statement, shared via its official communication channels, underscored that NEPRA, the regulatory body overseeing Pakistan’s power sector, holds sole authority to set and adjust tariffs based on factors like fuel costs and government subsidies. KE noted that recent tariff adjustments, including a proposed reduction of Rs4.84 per unit for January 2025 under the Fuel Charges Adjustment (FCA) mechanism, are pending NEPRA’s approval following a hearing scheduled for March 20, 2025. These adjustments aim to reflect fluctuations in global fuel prices and changes in power generation sources, offering potential relief to consumers.

Public frustration has been fueled by recent reports of NEPRA approving KE’s multi-year tariff for 2023-30, which allows the utility to recover Rs50 billion in uncollected bills from consumers. This decision, criticized by lawmakers across the Sindh Assembly, has raised concerns about the burden on honest bill-payers. KE, however, maintains that it operates within NEPRA’s regulatory framework and cannot independently impose rate changes. The company directed consumers to its website and customer care channels, including its call center at 118, for further clarity on tariff-related queries.

KE’s clarification seeks to restore public confidence as Karachi grapples with inflation and inconsistent power supply. The utility reiterated its commitment to transparent communication, urging consumers to rely on verified information from official sources. With NEPRA’s ongoing oversight, any future tariff changes will align with national policies, ensuring uniformity across Pakistan’s power sector. As economic pressures persist, KE’s statement aims to quell rumors and provide factual reassurance to its customer base.