Consumers in Pakistan's Karachi may face increased burden as power utility proposes new multi-year tariff

In a move that would increase consumers' financial burden, K-Electric — the utility that powers Pakistan's largest city — has proposed a new multi-year tariff (MYT) to the National Electric Power Regulatory Authority (NEPRA).

The proposed tariff hike of PKR 3-6 per unit is expected to increase the average price of electricity to PKR 47 per unit from PKR 42 per unit at present.

According to sources, NEPRA will hold a public hearing on the proposed MYT in the coming week. The hearing will provide an opportunity for stakeholders, including consumers and industrialists, to express their views on the proposed tariff hike.

The proposed MYT is expected to attract foreign investment in K-Electric, which is currently facing financial challenges. However, the tariff hike is likely to increase the financial burden on consumers, who are already struggling to pay their electricity bills.

It is worth noting that the proposed MYT is subject to approval by NEPRA, and the regulatory authority may modify or reject the proposal based on the feedback received during the public hearing.