KE on Leghari’s hit list: Companies must earn through efficiency, not subsidies

ISLAMABAD: Minister for Power Sardar Awais Leghari announced on Thursday that the federal government will file a review petition with NEPRA regarding K-Electric’s tariff, emphasizing that companies should generate profits through efficiency—not subsidies or charitable support.
Speaking to the media after addressing an energy workshop organized by the Centre for Economic Research in Pakistan (CERP), Leghari said the Power Division is preparing the petition to ensure that neither the federal government nor electricity consumers face undue financial pressure.
“We are moving towards privatization, and K-Electric—like other private investors—should earn profits based on performance,” he said. “Handouts are not a sustainable model; efficiency must take precedence. Regulatory laws must be enforced in all distribution companies (DISCOs).”
Responding to a question, Leghari said the Power Division would ask NEPRA to ensure fair pricing for consumers. “The burden of K-Electric’s current tariff structure is being carried by consumers of other distribution companies through cross-subsidization and taxes,” he noted.
“We hope NEPRA will make decisions that benefit both the country and its people,” he added.
On net metering, the minister said the policy has been revisited and that stakeholder consultations have been conducted. “If approved, the revised net metering policy will be implemented within a month,” he stated.
Leghari also highlighted reductions in electricity costs: “Electricity prices have decreased by 31% for the industrial sector, and by 50% for 18 million household consumers.” However, he acknowledged that climate change has led to a drop in hydropower generation, forcing reliance on more expensive sources. “The Fuel Price Adjustment (FPA) varies monthly, but overall, electricity prices in Pakistan have declined,” he said.
On the circular debt issue, Leghari revealed that the government plans to borrow from banks to eliminate the mounting circular debt soon.
Earlier, while addressing the workshop, the minister said the Prime Minister will soon announce a new industrial tariff policy aimed at enhancing competitiveness. He reiterated the government’s commitment to renewable energy, noting that 3,000 megawatts of furnace oil-based generation power plants have been shut down in recent months.