Federal Government Approves 26% Increase in K-Electric Tariff

The federal government of Pakistan has approved approximately 26% increase in K-Electric's tariff to the consumers with immediate effect. 

The federal government of Pakistan has approved approximately 26% increase in K-Electric’s (KE) tariff to the consumers with immediate effect.

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The decision to approve the increase in the KE tariff to the consumers was taken by the Economic Coordination Committee (ECC) of the Cabinet, which is led by Dr Abdul Hafeez Sheikh.

“The ECC approved the summary moved by the Power Division for the rationalisation of eleven quarterly adjustments of K-Electric Limited from July 2016 to March 2019”, according to a handout issued by the Ministry of Finance.

The ministry also stated that the quarterly adjustments of K-Electric from July 2016 to March 2019 would be notified with effect from September 1, 2020, which will bring the K-Electric tariff at par with 10 other power distribution companies.

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The base tariff for the K-Electric was originally Rs 11.22 per unit; this will be increased by up to 25.75% or Rs 2.89 per unit. National Electric Power Regulatory Authority (NEPRA) has determined an increase in power tariff for KE consumers by Rs 4.87 per unit or 44% on account of previous years’ adjustments.

K-Electric’s customers would further pay Rs 80 billion due to increased prices, while the government would pick a total Rs 30 billion cost – including Rs 4.7 billion on the basis of delayed increase for the month of July and August of this year.


Was the federal government’s decision right or should they have taken a bigger load of the K-Electric tariff on to themselves considering that Karachi is not being given the resources it has needed directly? Let us know what you think in the comments.


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