KE and Ministry of Energy Align on Need for Balanced Electricity Tariff, Prioritizing Both Consumers and Investors

A recent live debate on a leading broadcast media channel brought together Federal Minister for Power Awais Khan Leghari and K-Electric CEO Moonis Alvi to discuss KE’s multi-year electricity tariff currently under review with NEPRA. Contrary to a recent news report that suggested a disconnect between Karachi’s sole electricity provider and the Ministry of Energy, the discussion highlighted a shared commitment to finding a solution that balances consumer needs with fair returns for investors. The news report had cited concerns from the government regarding KE’s proposed tariff of Rs. 44.60 per unit, suggesting a potential reduction of approximately PKR 10. However, Minister Leghari emphasized the government’s dedication to ensuring affordable electricity for consumers while fostering a sustainable power sector that attracts private investment and encourages infrastructure development. “We are committed to ensuring that electricity remains affordable for the people,” stated Minister Leghari. “At the same time, we recognize the importance of creating a regulatory environment that allows companies like KE to thrive and continue investing in critical infrastructure.” In response, CEO Moonis Alvi expressed KE’s willingness to engage in open dialogue and collaborate with the government to achieve a mutually beneficial outcome. He provided insights into the rationale behind the proposed tariff, highlighting the necessity of recovering costs and attracting further investment to modernize Karachi’s electricity grid and ensure a reliable power supply. “Our investors have demonstrated unwavering commitment to Karachi,” Alvi remarked. “They have patiently supported KE for over a decade without earning any dividends. We seek a tariff that allows us to continue investing in Karachi’s energy future while ensuring that electricity remains affordable for our customers.” Alvi addressed concerns about cost calculations, interest rates, and foreign equity, emphasizing KE’s commitment to transparency and accountability. He expressed confidence in reaching a solution that satisfies both consumers and investors, recognizing the interconnectedness of their interests. Both Alvi and Leghari expressed optimism about finding common ground that serves the best interests of all stakeholders and whereby NEPRA to play its critical role in determining a balanced tariff. They also acknowledged the complexities of balancing competing priorities and remained confident in their ability to reach a more suitable consensus. “We are encouraged by the collaborative spirit and open dialogue,” stated Alvi. “We believe that by working together, we can achieve a tariff structure that supports Karachi’s continued growth and development while also ensuring KE’s sustainability.” Leghari echoed this sentiment, adding, “We appreciate KE’s contribution to Karachi’s power sector and recognize the importance of providing a fair return to their investors. We are confident that NEPRA will make a balanced decision that considers the needs of all stakeholders.” The discussion showcased the collaborative approach adopted by both the government and KE, demonstrating their shared commitment to ensuring a robust and sustainable power sector that benefits both consumers and investors. The final decision on the multi-year tariff rests with NEPRA, which plays a crucial role in balancing these vital interests.