K-Electric has proposed a substantial increase in its multi-year tariff, suggesting a hike of Rs3 to Rs6 per unit. If approved, the average electricity price for its consumers would rise to Rs47 per unit.
The National Electric Power Regulatory Authority (NEPRA) is set to conduct a public hearing this week, after which a decision on the proposed adjustment will be finalized.
Sources indicate that K-Electric's Saudi shareholder raised the issue with the Special Investment Facilitation Council (SIFC) and the prime minister. Federal Finance Minister Muhammad Aurangzeb has also been briefed on the matter.
The proposed tariff hike aims to attract foreign investment in K-Electric but could widen the tariff gap between K-Electric and other distribution companies (DISCOs) by up to Rs12 per unit.