Consumers to bear burden as K-Electric allowed to build recovery losses into tariff

In a major policy departure, the National Electric Power Regulatory Authority (Nepra) on Tuesday approved K-Electric’s request to incorporate unrecovered bills into its consumer tariff — starting with a recovery shortfall of 6.75 per cent in 2023-24, gradually declining to 3.5pc by 2029-30. Nepra set K-Electric’s base tariff at Rs40 per unit for the fiscal year 2023-24, which is almost 40pc higher than even the national average tariff of about Rs28 per unit in 2025-26 for the 10 public sector power distribution companies (Discos). The delta between the Discos’ average and K-Electric’s tariff is transferred to the taxpayers through the federal budget in the form of tariff differential subsidy.