The government has clarified that there are no plans to impose a new surcharge on electricity bills to recover costs associated with bank loans taken to reduce circular debt. This assurance came from the Power Division during a public hearing held to deliberate on a proposed tariff adjustment.
During the session, Power Division officials proposed a reduction in the national average electricity tariff by Rs1.14 per unit, bringing it down from Rs32.73 to Rs31.59. The base tariff for most consumers—excluding lifeline users—would see a decrease of Rs1.15 per unit under the rebasing plan.
However, concerns were raised by stakeholders, particularly from the industrial sector. A representative from the Karachi Chamber of Commerce and Industry warned that while a Rs1.15 relief was being offered, a Rs3.23 per unit surcharge might be introduced to cover commercial loan repayments. He cautioned that this surcharge could rise further if power consumption declines and criticized the limited time allowed to review the motion, requesting at least a week for proper scrutiny.
He also questioned the credibility of the claimed relief, noting that previous government deals with independent power producers had yielded only marginal benefits. Additional concerns were voiced regarding increased fixed charges for industrial users and restrictions on solar net metering, both of which were seen as barriers to industrial growth.
Other participants raised questions about the transparency and fairness of the tariff structure. Some pointed out that industrial consumers had been receiving a Rs6 per unit subsidy up to June 30, but would now face a Rs5 increase due to rebasing.
Nepra officials acknowledged issues with electricity overbilling, accusing power distribution companies (DISCOs) of manipulating meter readings to shift consumers out of the protected 200-unit category, resulting in higher bills. Investigations into these practices are ongoing.
Another participant highlighted inconsistencies in K-Electric’s (KE) tariff application, warning that Karachi-based consumers might end up paying more if KE’s actual tariff was not properly factored into the new structure. He also advocated for separate tariffs for B3 meter consumers, a revision of peak-hour charges, and greater engagement with industrial associations in tariff planning.
There were also calls for increasing sanctioned industrial loads to support export growth and introducing fixed charges for solar net metering. Issues such as delays in cold storage approvals were brought up, with Nepra questioning the Power Division’s failure to submit necessary comments, although officials claimed cabinet approval was in process.
A senior citizen raised concerns about high charges for those consuming over 200 units per month. In response, the Power Division reiterated that the government continues to subsidize consumers using up to 200 units.
The hearing underscored widespread unease over potential hidden costs and highlighted the need for transparency, industry consultation, and consumer protection in the power tariff structure.
