NEPRA postpones KE’s PKR4.69 relief hearing amid govt intervention

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Monday deferred a crucial hearing on K-Electric’s (KE) request for a Rs4.69 per unit reduction in power tariffs after the Power Division sought more time to review the proposal, citing potential complications with Pakistan’s IMF programme. The regulator expressed strong reservations over the last-minute intervention, with NEPRA Chairman questioning why subsidy concerns were being raised during what should have been a routine fuel adjustment proceeding.

KE had sought a Rs4.69/unit cut for April under monthly fuel adjustment, which would have provided significant relief to consumers. The Power Division argued that approval could disrupt the uniform national tariff and fiscal space, revealing PKR21bn in subsidies have already been paid this fiscal year. The Chairman remarked, “This is no way to proceed – raising subsidy issues mid-hearing undermines due process,” while members noted FCA is meant to be a transparent, public hearing process.

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The Power Division’s eleventh-hour request sparked heated debate, with NEPRA members observing that when KE consumers paid higher tariffs previously, the uniform tariff wasn’t impacted. Officials confirmed Rs125bn remains available in subsidy allocations, but warned of IMF complications. The regulator ordered the government’s submission to be published on NEPRA’s website for public transparency.

Proceedings were adjourned for one week with all stakeholders directed to submit comments as the government prepares a revised summary for cabinet approval. Fresh public notices will be issued for the rescheduled hearing, with the cabinet set to review the Power Division’s uniform tariff proposal. A decision is now expected by month-end.