NEPRA Approves Rs. 39.97 Per Unit Average Electricity Tariff for K-Electric for Next 7 Years

Islamabad:The National Electric Power Regulatory Authority (NEPRA) has approved a new average electricity supply tariff of **Rs. 39.97 per unit** for **K-Electric**, applicable from **fiscal year 2023-24 to 2029-30**, marking an **18% increase** over the previous tariff.

The newly approved tariff replaces the earlier seven-year tariff structure, which expired on **June 30, 2023**. According to NEPRA, the previous average tariff was **Rs. 33.82 per unit**, while the new rate is **34% higher** than the base tariff set for other distribution companies (DISCOs) in Pakistan for the year 2023-24.

### Breakdown of the New Tariff:

For the fiscal year **2023-24**, the **Rs. 39.97/unit** tariff includes:

* **Electricity purchase cost:** Rs. 31.96/unit
* **Transmission cost:** Rs. 3.31/unit
* **Distribution cost:** Rs. 2.28/unit
* **Supply margin:** Rs. 2.86/unit
* **Adjustment from previous year:** (-) Rs. 0.44/unit deduction

Despite the significant hike, NEPRA clarified that **the new K-Electric tariff will not directly impact consumers** due to the **uniform national electricity tariff policy**. The **federal government will cover the difference through subsidies**, ensuring end-users in Karachi are not burdened with the increase.

NEPRA’s decision also outlines performance goals for K-Electric, including improving its **recovery rate from 93.25% to 96.5%** over the next seven years.

This revision reflects ongoing efforts to ensure the financial viability of the power sector while maintaining affordability for consumers through state-supported subsidies.