The recent revision of K-Electric’s Multi-Year Tariff (MYT) by the National Electric Power Regulatory Authority (NEPRA) will not bring any relief to Karachi’s electricity consumers, despite a major cut in the company’s official tariff rate.

According to energy expert Rehan Javed, who is associated with the Korangi Association of Trade & Industry (KATI) and has closely followed NEPRA’s hearings, the change will not reduce the monthly electricity bills of Karachi residents. In fact, he warned that customers may end up paying more.

Rehan explained that NEPRA’s decision includes a retrospective reversal of fuel charge adjustments (FCA) for the fiscal year 2024. This means that consumers will now have to pay back what they were earlier credited as negative fuel adjustments.

“As per the decision, K-Electric will recover from consumers the negative FCA that was given last year. This translates to an additional cost of Rs1.64 per unit for electricity consumed in FY24,” he said.

He further estimated that K-Electric’s consumers could face an additional financial burden of Rs30 to Rs40 billion under fuel adjustments for the fiscal years 2023 and 2024 combined.

Although NEPRA has reduced K-Electric’s official tariff from Rs39.70 to Rs32.37 per unit, the expert clarified that the benefit will not be passed on to end users because of these retrospective adjustments and other surcharges.

Meanwhile, K-Electric’s financial projections have also been hit hard. The utility’s expected profit of Rs4 billion for 2025 has now turned into an anticipated loss of nearly Rs90 billion, reflecting the impact of NEPRA’s revised tariff structure on the company’s bottom line.