Nepra to hear K-Electric’s Rs58 billion tariff adjustment claims on May 12

The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on May 12, 2026, on K-Electric’s request for adjustment of claims exceeding Rs58 billion under its seven-year Multi-Year Tariff (MYT) covering FY2017-2023, Business Recorder reported. 

According to a notice issued by the regulator, K-Electric has sought an End of Term Adjustment (EoTA) of Rs43.6 billion under the MYT determination.

The utility’s claims include Rs23.4 billion related to working capital costs, Rs11.05 billion on account of exchange rate impact on return on equity and Rs10.4 billion linked to working capital requirement adjustments.

An amount of Rs1.3 billion was deducted from the claim for investments that were not incurred.

Apart from the EoTA, K-Electric has also requested Rs15.3 billion under tax pass-through and other adjustments.

The amount includes Rs7.5 billion for taxes paid in 2023, Rs3 billion as additional tax liability for 2022 and Rs4.1 billion related to minimum tax for the 2018-2021 period.

Additional claims include Rs461 million under the Workers Welfare Fund and Workers Profit Participation Fund pass-through and Rs261 million in pending adjustments related to electricity purchases from independent power producers.

In a letter dated October 9, 2023, K-Electric informed Nepra that auditors had completed verification of the utility’s write-off claims for FY2023.

The utility also requested adjustments under the End of Term Adjustment mechanism in line with Nepra’s MYT determination for FY2017-2023 and Mid-Term Review decision issued on March 1, 2022.

K-Electric stated that the seven-year tariff remained effective until June 30, 2023, and noted that tariffs for generation, transmission, distribution and supply had already been determined after approval of its investment plan.

According to the utility, around Rs500 billion was cut from the allowed tariff increase following intervention by the federal government.

K-Electric requested Nepra to include unrecovered costs for the April-June 2023 quarter, along with end-of-term adjustments and verified write-off claims, into the tariff structure applicable under the new MYT effective July 1, 2023.