National Electric Power Regulatory Authority (NEPRA) has announced its decision regarding K-Electric’s generation tariff petition for the control period following June 2023, as per its determination dated October 22, 2024. This petition was originally submitted by K-Electric in December 2022. It is important to note that this determination will not impact the electricity rates charged to consumers, which remain governed by the uniform tariff policy applied throughout Pakistan.
This decision represents a crucial step for K-Electric in advancing its comprehensive investment plan for 2030. This plan focuses on reducing losses in transmission and distribution, expanding the customer base, and enhancing the utility’s infrastructure to meet both current demands and future energy needs.
While K-Electric is in the process of thoroughly evaluating the extensive determination issued by NEPRA, the utility has noted that the approved tariff structure includes certain reductions. These reductions particularly pertain to Operation & Maintenance (O&M) costs, Return on Equity (RoE), and a redefined control period. K-Electric is actively collaborating with NEPRA to ensure that these changes align with its vision of establishing a stable and sustainable energy ecosystem.
The utility is also seeking the prompt finalization of tariffs for distribution, transmission, and supply, along with a review of its investment plan. Since its privatization, K-Electric has invested over USD 4 billion in Karachi’s power infrastructure. This substantial investment has led to a doubling of the customer base and the energy supplied to these customers, as well as a significant reduction in line losses by half. As a result, 70 percent of K-Electric’s network operates without load-shedding.
