NEPRA chief rebuffs power minister’s remarks on K-Electric: ‘We’ve given our decision, now it’s up to the minister’

ISLAMABAD — NEPRA Chairman Waseem Mukhtar on Thursday dismissed federal Power Minister Awais Leghari’s criticism of K-Electric’s tariff determination, stating bluntly during a public hearing, the decision is final, “We’ve given our decision, now it’s up to the minister to respond.” The remarks came amid a heated discussion during the monthly fuel charges adjustment (FCA) hearing, where the Central Power Purchasing Agency (CPPA-G) sought to increase April’s power tariff by Rs1.27 per unit.

Notably, Awais Leghari early Thursday during a seminar announced that the Power Division will approach NEPRA to seek a review of this decision.

The NEPRA hearing, held at its headquarters, attracted wide participation from CPPA-G officials, the business community, journalists, and concerned citizens. The CPPA-G’s request would translate into a Rs12.93 billion additional burden on consumers for April, citing a steep drop in hydropower generation due to reduced water availability.

Hydropower decline blamed for hike

Officials from the National Power Control Centre revealed that hydropower output fell by nearly one billion units in April. “The decline in hydro generation is the primary driver behind the proposed fuel adjustment,” an NPCC official explained.

Consumers voiced frustration at the growing electricity costs, questioning the government’s commitment to affordability. “Under the prime minister’s plan, electricity was supposed to get cheaper, not more expensive,” one consumer argued during the hearing.

Consumers question Neelum-Jhelum’s fate

Rights activist Arif Balwani demanded transparency on the Neelum-Jhelum Hydropower Project, which he said had consumed Rs500 billion. “Should we now offer fateha for Neelum-Jhelum?” he asked pointedly, pressing NEPRA on the status of an earlier directive to compile a report on water availability. NEPRA officials said only WAPDA could provide accurate details on the project.

CPPA-G says impact to be only 36 paisas per unit

Despite the requested Rs1.27 hike, CPPA-G Managing Director clarified that the effective burden on consumers would be significantly less. “A 90 paisa per unit negative adjustment will offset the increase. So, consumers will face just a 36 paisa hike,” he said.

He further noted the FCA adjustment will apply only for April and will not impact lifeline users, prepaid customers, EV charging stations, or K-Electric consumers.

K-Electric tariff row simmers

The K-Electric issue resurfaced after Federal Minister Awais Leghari recently said that the utility’s tariff should be determined based on “efficiency, not charity.” NEPRA’s chairman, responding to a question during the hearing, reiterated the regulator’s stance: “We’ve given our decision, now it’s up to the minister.”

The federal government reportedly holds reservations about NEPRA’s decision on K-Electric’s multi-year tariff, which has been a longstanding point of contention.

Kalabagh Dam resurfaces in debate

Responding to a question on the impact of hydropower project shutdowns, CPPA-G’s MD noted that had the Kalabagh Dam been built, Pakistan wouldn’t be facing today’s electricity shortages. “The best-case scenario would have been a functioning Kalabagh Dam,” he said.

NEPRA concluded the hearing stating that it had heard all stakeholders and would issue a final determination after further analysis of the submitted data.