Nepra notifies KE base tariff at Rs32.37 per unit
• Revised tariff Rs7.60 lower than original Rs39.97 determination • KE says revised MYT financially unsustainable, may pursue legal remedies • Consumers will continue to pay uniform tariff applicable to other Discos ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday notified K-Electric’s average base tariff at Rs32.37 per unit under its seven-year multiyear tariff…
The National Electric Power Regulatory Authority (Nepra) has notified K-Electric's average base tariff at Rs32.37 per unit under its seven-year multiyear tariff (MYT) regime for FY24 to FY30. This reduction of Rs7.60 per unit effectively lowers the government's subsidy burden by nearly Rs200 billion. The revised tariff was determined by Nepra in October last year, after reviewing petitions filed by various parties, including KE management and the power division.
The regulator had initially set the MYT at Rs39.97 per unit, but the revised rate brings KE's effective rate of return down from 22-23% to around 13-14%. This decision also cuts the government's subsidy payables to K-Electric by approximately Rs200bn over the seven-year period. KE had challenged the revised MYT in the Sindh High Court, but a three-member tribunal upheld Nepra's determination on Wednesday.
The regulator clarified that KE consumers will continue to pay the uniform tariff applicable to other distribution companies, in line with the government's policy guidelines. KE may now consider legal remedies after receiving the tribunal's detailed order, as the matter is now final unless overturned by a higher legal forum.
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