K-Electric Limited (KE), the sole power utility of Karachi, faces a potential hit to its revenues after the National Electric Power Regulatory Authority (NEPRA) slashed its average tariff to Rs32.37/kWh, replacing the earlier determination of Rs39.97/kWh announced on May 27, 2025.
In its notice to the Pakistan Stock Exchange (PSX) on Tuesday, the listed company said that NEPRA’s decision, “would not be sustainable for KE and would also have significant consequences for its stakeholders, including its consumers”.
“The company is currently reviewing the decisions in detail and will exercise available remedies as permitted under the applicable laws and regulatory framework,” it added.
The development follows NEPRA’s review of the federal government’s petition against its earlier determination, which resulted in the reduction of KE’s multi-year base tariff for the FY2024–FY2030 period.
According to the new determinations, Nepra has upheld its previous decision on KE’s write-off claims amounting to Rs50 billion, stating that the Authority “finds no reason to modify or alter the impugned decision.”
However, the regulator has made amendments in certain aspects of its earlier determinations related to transmission, generation, and supply tariffs.
The review motions were filed by the Power Division, Tanveer Barry, Arif Bilwani, Syed Hafeez Uddin (MNA) and Jamaat-e-Islami Karachi.
The regulator stated that it had carefully reviewed submissions from KE, stakeholders, and the Ministry of Energy (Power Division).
Nepra observed that with the completion of the KKI/NKI interconnection and enhanced grid access exceeding 2,000 MW, KE is expected to rely progressively on lower-cost national generation.
Accordingly, periodic reassessment of the thermal fleet’s economics is essential to protect consumers from avoidable capacity payments on underutilised assets.
