KE faces major tariff overhaul as govt ushers power sector reforms

Islamabad: Energy Minister Awais Leghari has put K-Electric (KE) squarely in the spotlight as the government prepares to file a tariff review petition with NEPRA. “KE must transition from charity-based models to performance-based earnings,” Leghari declared, signaling a tough new stance toward the private power distributor that serves Pakistan’s commercial capital.

The proposed reforms specifically target KE’s operational framework. While announcing broader sector improvements including a revised net metering policy (to be implemented within a month) and significant tariff reductions (31% for industries, 50% for 18 million households), the minister emphasised that KE’s pricing structure unfairly burdens consumers of other DISCOs. “This imbalance must end,” Leghari stated bluntly.

Govt outlines power sector reforms aimed at reducing electricity prices

Climate-related challenges have compounded KE’s difficulties, with reduced hydropower forcing greater reliance on expensive generation alternatives. However, the minister maintained that these market conditions don’t excuse poor performance. “Monthly fuel adjustments may fluctuate, but KE’s fundamental inefficiencies cannot continue being subsidised by other distribution companies,” he asserted.

The government’s move comes alongside broader efforts to resolve circular debt through bank financing, but makes clear that KE – long a contentious player in Pakistan’s power sector – will face heightened scrutiny. “The era of special treatment is over,” Leghari’s comments suggested, setting the stage for a potential showdown with the private utility over its pricing and service delivery models.