KARACHI - Pakistan Tehreek-e-Insaf (PTI) MPA Khurram Sher Zaman has blasted the National Electric Power Regulatory Authority (Nepra) and K-Electric for allegedly fleecing the people of Karachi.

Referring to a letter written by the federal water and power secretary to Nepra chairman about overbilling of Rs62 billion by K-Electric, Sher Zaman lambasted Nepra for not playing its role as an independent regulator and safeguarding interests of consumers.

In addition, the PTI legislator condemned K-Electric for its high tariff and highhandedness when dealing with the people of Karachi.

Sher Zaman demanded that the Ministry of Water and Power and Nepra immediately take action to ensure that Rs62 billion windfall profits of K-Electric are transferred to Karachi consumers before the company’s ownership is changed.

On the other hand, K-Electric clarified in a press release that claims about excessive collection were a wrong interpretation of the tariff mechanism. The utility has stated that consumers have been charged as per approved tariff without any anomaly.

It explains that KE has Multi Year Tariff (MYT), designed by international consultants based on global best practices and was approved by the Ministry of Water and Power in 2002. The Multi Year Tariff is primarily a performance-based tariff where K-Electric earns through improvement in its performance against set benchmarks in the tariff. These benchmarks include Transmission & Distribution Losses, Plant Efficiency and Operations and Maintenance Costs.

Also, the approved MoWP guidelines annexed to tariff determination of 2002 explicitly allow a tariff structure for KE in recognition of it being a vertically integrated utility, versus other distribution companies. K-Electric also mentioned that there has been no violation of any tariff regulation and all monthly fuel price variations are passed on to the consumers as per the approved tariff mechanism.