K-Electric Limited (KE), the sole power utility serving Karachi, has warned that the new tariff set by the National Electric Power Regulatory Authority (NEPRA) “would not be sustainable” for the company or its stakeholders after the regulator reduced its average tariff from Rs39.97/kWh to Rs32.37/kWh.
The reduction follows NEPRA’s decision on review motions filed by multiple parties against its earlier Multi-Year Tariff (MYT) determinations for KE, covering the period FY2024 to FY2030.
In a statement to the Pakistan Stock Exchange (PSX), K-Electric said NEPRA’s revised determinations would have “significant consequences for its stakeholders, including consumers,” and that the company is currently reviewing the detailed order.
The utility further stated that it will “exercise all available remedies permitted under applicable laws and regulatory frameworks.”
The new decision covers several key areas — including KE’s generation plants, transmission and distribution network, supply business, and the company’s investment and losses assessment plan for the seven-year period.
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.
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.
KE warned that the downward revision of the average tariff could hurt its financial sustainability and impact long-term investments, ultimately influencing the quality and continuity of power supply in Karachi and adjoining areas.
Privatized in 2005, K-Electric is Pakistan’s only vertically integrated power utility, serving over 3.6 million customers. 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.
