Govt Paying Rs. 291 Billion Annual Subsidies to K-Electric Customers

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The Federal government is providing Rs. 291 billion annual subsidies to K-Electric for protecting Karachiites from the impact of expensive electricity being generated by the company.

To bridge the huge difference between the National Electric Power Regulatory Authority (NEPRA) determined tariff of K-Electric and applicable tariff, the federal government is paying hundreds of billions in subsidies annually.

Currently, the NEPRA-determined tariff of K-Electric is around Rs. 43/unit, whereas its present applicable tariff is approximately Rs. 26/unit, according to official documents seen by ProPakistani.

Under the National Electricity Policy 2021, there should be a uniform electricity tariff across the country. To maintain the tariff of ex-WAPDA Discos and KE the same as per the National Electricity Policy 2021, the federal government is providing subsidies to KE’s consumers.

The difference between the determined tariff of KE by the National Electric Power Regulatory Authority (NEPRA) and the applicable tariff is being paid by the Federal government from the national kitty.

Since its privatization KE has failed to induct cheaper electricity into the system which has resulted in the high cost of electricity generation by the Company. However, now KE is planning to induct solar power plants into its generation fleet, which will reduce the generation cost of the company.



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