The Economic Coordination Committee (ECC) has approved a proposal to move towards a single electricity tariff framework for the entire country, directing that the arrangement be reviewed after one year.
The Power Division told the ECC that the National Electric Power Regulatory Authority (Nepra) is working on establishing a single system operator with a unified basket. Integration of Karachi’s private utility K-Electric with the state-run distribution companies (DISCOs) is expected to take one to two years.
To ensure uniform tariffs under the National Electricity Policy, the ministry proposed aligning Power Purchase Price Adjustments (PCAs) across the sector, while fuel charge adjustments would continue to be calculated separately for K-Electric and DISCOs based on their own generation mix and fleet costs. Nepra maintained that any uniformity at the consumer end must remain policy-driven, supported by subsidies or cross-subsidies.
The Finance Division endorsed the proposal but advised that its impact be reviewed after a year. Nepra also stressed that the effect of shifting to a single dispatch model should be carefully examined.
The Power Division clarified that K-Electric is entitled to 1,000 MW from the national grid but its offtake has recently risen to 1,600 MW, making up over 65% of its generation basket.
During a recent public hearing, however, interveners opposed the idea of uniform fuel adjustment for K-Electric, warning that it could deprive consumers of the monthly relief they currently receive under the existing mechanism.
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