NEPRA Approves K-Electric’s Multi-Year Tariff for Transmission and Distribution Until FY2030
The National Electric Power Regulatory Authority (NEPRA) has officially approved K-Electric’s (KE) new Multi-Year Tariff (MYT) for its transmission and distribution (T&D) segments, covering the fiscal years 2024 to 2030. The development was disclosed by K-Electric in a notice to the Pakistan Stock Exchange (PSX) on Monday.
The application for the revised MYT was initially submitted by KE on December 27, 2023, following NEPRA’s approval of its corresponding investment plan for the same period.
“Pursuant to investment plan approval for the MYT period, KE had applied to NEPRA for approval of MYT for transmission and distribution network segments… in accordance with Rule 3(1) of NEPRA (Tariff Standards and Procedure) Rules, 1998,” the company stated.
While KE has acknowledged NEPRA’s approval, it is currently reviewing the detailed tariff and may pursue statutory remedies if required, as per existing legal frameworks.
Supply Tariff Still Under Determination
Importantly, NEPRA has yet to finalize the MYT for the supply segment and is still processing KE’s motion for review of the approved investment plan for the MYT period. According to K-Electric, the outcome of these determinations will play a critical role in shaping the company’s financial statements post-June 30, 2023.
K-Electric emphasized the need for a sustainable, long-term tariff structure—especially for its T&D operations—stating that such stability is vital to attract financing and equity investment. Lenders and investors require predictable revenue streams and profitability estimates to support funding decisions for infrastructure development and operational expansion.
KE has requested a seven-year tariff control period, consistent with previous regulatory practices and aligned with its strategic goals for grid modernization and capacity expansion.