NEPRA Revises K-Electric’s Multi-Year Tariff, Cuts Average Tariff to Rs 32.37/kWh

PAKISTAN

Tariff cut ‘would not be sustainable’ for the company: KE

By Najeeb Naich

K-Electric Limited (KE) has announced that the National Electric Power Regulatory Authority (NEPRA) has issued its decisions on several key regulatory matters, including the company’s Multi-Year Tariff (MYT) for the period FY2024 to FY2030.

In a notice to the Pakistan Stock Exchange (PSX) under Sections 96 and 131 of the Securities Act, 2015, KE stated that NEPRA’s determinations cover:

MYT for KE’s generation power plants;
MYT for transmission, distribution, and supply businesses;
Transmission and Distribution Investment Plan and losses assessment for FY2024–FY2030; and
Review of write-off claims for MYT 2017–2023.

According to the company, while NEPRA has maintained its earlier stance on KE’s write-off claims, it has drastically revised earlier decisions regarding other components of the tariff framework.

The regulator has reduced the average tariff for KE from Rs 39.97 per kilowatt-hour (kWh), as announced on May 27, 2025, to Rs 32.37 per kWh, marking a significant downward adjustment.

KE stated that the revised determinations “would not be sustainable for the company and would also have significant consequences for its stakeholders, including its consumers.”

The company said it is reviewing NEPRA’s decisions in detail and intends to exercise available remedies under the applicable laws and regulatory framework.

The tariff revision forms part of NEPRA’s ongoing oversight of K-Electric’s integrated utility operations, which span generation, transmission, and distribution in Karachi and adjoining areas.