KARACHI: The National Electric Power Regulatory Authority (NEPRA) has reduced K-Electric’s (KE) average power tariff to Rs32.37 per kilowatt-hour (kWh) from Rs39.97/kWh, sparking strong concern from the power utility, which warned that the decision “would not be sustainable” for its operations and stakeholders.
In a filing with the Pakistan Stock Exchange (PSX), the company said the revised determination “would also have significant consequences for its stakeholders, including its consumers.” The decision, which impacts KE’s Generation Power Plants, Transmission, Distribution, and Supply businesses for the period FY 2024–2030, includes significant revisions to previously announced tariff rates and the company’s investment and losses assessment plan.
“The company is currently reviewing the decision in detail and will exercise available remedies as permitted under the applicable laws and regulatory framework,” KE stated, emphasizing its commitment to pursuing all legal options. The utility warned that the downward revision could hurt its financial sustainability and impact long-term investments, ultimately influencing the quality and continuity of power supply to over 3.6 million customers in Karachi and adjoining areas.
The reduction follows NEPRA’s decision on review motions filed by multiple parties against its earlier Multi-Year Tariff (MYT) determinations for KE. The review motions had been filed by the Power Division, as well as by individuals including Tanveer Barry, Arif Bilwani, Syed Hafeez Uddin (MNA), and Jamaat-e-Islami Karachi.
While NEPRA upheld its previous stance on KE’s Rs50 billion write-off claims for MYT 2017–2023, it made substantial changes to other components of its earlier determination related to tariffs, transmission, and supply operations.
Privatized in 2005, K-Electric is Pakistan’s only vertically integrated power utility. The company’s majority ownership (66.4%) lies with KES Power, a consortium of Al-Jomaih Power Limited (Saudi Arabia), National Industries Group (Kuwait), and KE Holdings (formerly IGCF). The Government of Pakistan retains a 24.36% stake, while the remainder is held by the public as free-float shares.
