Pakistan regulator sets K-Electric base tariff at Rs32.37 — Dawn
In Pakistan, the National Electric Power Regulatory Authority (NEPRA) has set K-Electric’s average base tariff at 32.37 Pakistani rupees per unit of electricity. The tariff will apply under the company’s seven-year multi-year tariff regime for fiscal years 2024–2030, Dawn reports.
Previously, NEPRA set K-Electric’s base tariff at 39.97 rupees per unit, but in October 2025 revised its decision and reduced the rate by 7.60 rupees, or 19%. The review followed appeals by the government’s energy division, the Jamaat-i-Islami party, industrialists from Karachi and the company’s management.
Indexation and subsidies
The base tariff for fiscal year 2024 will be indexed for inflation and exchange-rate changes over the following six years, through fiscal year 2030. According to the publication’s informed sources, the revised decision reduced K-Electric’s effective rate of return to approximately 13–14% from 22–23% under the previous decision.
The same sources said that government subsidy payments to K-Electric over the seven-year period could decrease by approximately 200 billion rupees. Earlier, the government challenged the initial tariff, saying it could have provided the company with an additional benefit of nearly 750 billion rupees at the expense of the state treasury, taxpayers and consumers across the country.
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Company appeal
K-Electric challenged the revised multi-year tariff in the Sindh High Court and obtained a stay on its implementation. The court later referred the case to the NEPRA Appellate Tribunal as the proper body to consider it.
The three-member tribunal upheld the regulator’s revised decision. A K-Electric representative said that the tribunal orally announced the dismissal of the company’s appeals, but a written decision has not yet been issued.
Following the tribunal’s decision, NEPRA published four interconnected notifications in the official gazette. The regulator clarified that K-Electric consumers will not pay the tariff determined by NEPRA and will continue to pay the uniform tariff applied to customers of other distribution companies. K-Electric considers the revised tariff financially unsustainable and said it would consider available legal remedies after receiving the full text of the decision.
