KARACHI — K-Electric (KE) said on Tuesday that the National Electric Power Regulatory Authority’s (Nepra) recent decision on review motions has reduced the utility’s average tariff by Rs7.6 per kilowatt-hour (kWh), a move the company warned could have “far-reaching consequences” for its stakeholders, including consumers.
According to a KE statement, the regulator’s ruling has lowered the company’s average tariff from Rs39.97/kWh to Rs32.37/kWh. The utility clarified, however, that the revision does not apply to customers, meaning there will be no immediate change in consumer electricity bills.
Nepra had earlier, in May, set KE’s base tariff at Rs39.97 per unit for fiscal year 2023–24 — nearly 40 per cent higher than the national average of around Rs28 per unit for the ten state-owned distribution companies (Discos). The difference was covered through federal tariff differential subsidies. Following multiple review petitions, Nepra issued its latest determination on Monday.
The Nepra statement read: “As a result of Nepra’s decision, the additional burden on taxpayers will be reduced, and K-Electric will be incentivised to cut losses instead of passing them on.” https://t.co/rropQqdaWc
— Dawn Business (@dawn_business) October 27, 2025
The decision revises various components of KE’s multi-year tariff (MYT) for 2024–2030, including its generation, transmission, distribution, and supply businesses. Nepra also upheld its earlier stance on KE’s write-off claims for the 2017–2023 period but significantly altered other elements of the tariff structure.
KE expressed concern over the revisions, stating that the new framework “is not sustainable for the company” and could affect investment, operations, and consumers. The utility said it is reviewing the decision in detail and will “exercise all available remedies” under the law.
Nepra’s notification maintained several earlier positions, including on the sharing mechanism for operational cost savings and the treatment of late payment surcharges. The authority rejected requests to shorten the seven-year tariff control period and declined to allow any upfront recovery loss, saying such a measure would transfer KE’s inefficiencies onto consumers or the national budget.
You May Also Like: Pakistan to Get First Official Apple Retail Store by End of 2025
The regulator also reaffirmed its decision to base KE’s tariff on a 100 per cent recovery target while allowing limited annual write-offs under strict criteria.
