KATI urges minister to audit power sector data

Call for independent financial review

KATI President Shaikh Umer Rehan sent a letter to the Power Minister regarding deficiencies in data used for the Incremental Consumption Package. The association warned that industrial consumers faced billions of rupees in extra costs due to errors in determining marginal electricity supply costs. NEPRA approved the package on December 9, 2025, at Rs22.98 per kilowatt-hour based on assurances that no other consumers would bear these costs. A subsequent review highlighted serious shortcomings in the information provided by the Power Division and ISMO.

Timeline of regulatory delays

The semi-annual review was due after May 31, 2026, yet NEPRA wrote to the Ministry on June 16 seeking necessary information. Data submitted on July 29 reportedly lacked marginal-cost analysis, prompting the Ministry to request a regulator-led review on September 9. On October 15, NEPRA stated that the Ministry's submission did not furnish specific analysis or recommendations sought by officials. The revised ICP announced in December last year was based on a commitment to ring-fence additional costs for beneficiaries only.

Disputed cost calculations

KATI asserts that the adjusted unit rate of Rs25.30 falls short of the true marginal cost, which NEPRA determined to be either Rs31.83 or Rs29.65 on November 6, 2026. This discrepancy results in higher monthly fuel costs adjustments that burden all consumer categories across the country instead of just select industries. Letters were also sent to Commerce Minister Jam Kamal Khan and Special Assistant to the Prime Minister on Energy retired Gen Muhammad Zafar Iqbal. The association demands one of the big four accounting firms be appointed to verify power sector data immediately.