Pakistan’s power regulator has ordered state-run power distribution companies and K-Electric to refund consumers Rs1.7856 per unit in September electricity bills, while issuing a blistering warning over chronic mismanagement that has cost the sector hundreds of billions of rupees.
The National Electric Power Regulatory Authority (NEPRA) said consumers were overcharged in July, prompting the adjustment under its monthly fuel charges review.
For the first time, refunds will be applied uniformly nationwide after a federal Cabinet decision ratified on Aug. 29, with K-Electric customers now receiving the same treatment as other utilities. KE consumers who missed a Rs0.7772 per unit credit in August will also see that benefit reflected in September bills.
But alongside the relief, NEPRA’s technical member issued a scathing critique of systemic failures driving up tariffs and undermining reliability. The prolonged shutdown of Guddu Unit-16 alone has cost Rs968 million in July and Rs121.32 billion since July 2022, while the stalled Neelum-Jhelum project has remained offline despite Rs75.5 billion collected from consumers via a surcharge.
Transmission bottlenecks, including underuse of the high-voltage direct current line—operating at just 39% capacity—and South-North corridor constraints, added Rs91 million in July losses. Part Load Adjustment Charges surged to Rs4.3 billion that month and Rs41.2 billion for FY2024-25.
“These are not isolated incidents but a continuation of systemic failures,” the member wrote, warning that without accountability for inefficiencies, delays, and mismanagement, reforms alone will not restore the sector’s financial health or reliability.