ISLAMABAD: A spokesperson for the Power Division has welcomed the National Electric Power Regulatory Authority (NEPRA)’s review decision on K-Electric’s Multi-Year Tariff (MYT), terming it a landmark development for the people of Karachi and a vital step toward ensuring fairness and consistency in Pakistan’s power sector.
The spokesperson said that the Power Division is proud to have filed an in-time, merit-based review, adding that NEPRA’s decision reflects a transparent regulatory correction made in line with national standards and public interest.
The spokesperson noted that some circles are spreading misinformation to misrepresent NEPRA’s review as a fiscal manoeuvre or a consumer burden.
“In reality, the Authority’s determinations were guided purely by principles of equity, consistency, and sectoral sustainability,” the spokesperson clarified.
The review was aimed at aligning K-Electric’s tariff framework with those applicable to other transmission and distribution companies. NEPRA’s revisions removed tariff elements inconsistent with national regulatory standards — such as foreign currency–indexed returns and excessive loss allowances — to ensure that all utilities operate under uniform principles of cost recovery, efficiency, and transparency.
According to the spokesman of the Power Division, the revised framework converts the Return on Equity (RoE) from a USD-based to a PKR-based benchmark, rationalizes transmission and distribution losses, and allows working capital based on actual requirements. These measures, the spokesperson said, correct structural imbalances rather than reducing legitimate recoveries.
The official also clarified that claims suggesting NEPRA’s decision deprives Karachi consumers of “relief” stem from a misunderstanding of how electricity tariffs are applied. “K-Electric’s MYT governs the company’s internal revenue requirements, not the consumer-end tariff,” the spokesperson said. “Consumer tariffs across all distribution companies, including K-Electric, are determined and notified by the federal government under the national uniform tariff policy.”
Addressing reports of subsidy withdrawal, the Power Division stated that the government’s subsidy for K-Electric consumers remains intact. “The notion that the government has diverted or removed a Rs7 per unit subsidy is incorrect. A reduction in subsidy is not a diversion of funds — it merely reduces fiscal expenditure that would otherwise add to the national budget deficit,” the statement added.
The spokesperson reiterated that NEPRA’s review reflects the regulator’s independence and institutional autonomy. “This decision underscores NEPRA’s neutrality and commitment to a transparent, equitable regulatory framework,” the statement concluded.
