KE’s MYT revision to raise consumer costs instead of lowering bills

KARACHI: K-Electric‘s revised Multi-Year Tariff (MYT) will not bring any relief to consumers, as electricity bills are expected to remain unchanged despite a reduction in the base tariff.

According to energy expert Rehan Javed of the Korangi Association of Trade & Industry (KATI), the decision announced by NEPRA on Monday night will, in fact, increase the burden on consumers.

He said that NEPRA’s decision to reverse the negative Fuel Charge Adjustment (FCA) retrospectively for FY24 means consumers will pay an additional Rs 1.64 per unit. “K-Electric consumers will have to pay an extra Rs 30 to 40 billion under FCA for the fiscal year 2023 and 2024,” he added.

NEPRA has reduced KE’s tariff from Rs 39.70 to RS 32.37 per unit, while the utility’s projected profit of RS 4 billion for 2025 has now turned into an estimated loss of Rs 90 billion

Industry representatives have expressed concerns that the regulators’ moves, while appearing to lower KE’s tariff, effectively shift a significant financial burden onto consumers.