NEPRA Revises K-Electric Tariff: Loss Benchmark to Rs. 32.37/kWh

The National Electric Power Regulatory Authority (NEPRA) has revised K-Electric’s Multi-Year Tariff (MYT) for the FY 2024–2030 period. NEPRA cut the earlier announced losses benchmark from PKR 38.97/kWh to PKR 32.37/kWh. The update was disclosed by K-Electric Limited (KE) in a filing to the Pakistan Stock Exchange (PSX) on October 21, 2025.

NEPRA Review Decisions Impact Multiple KE Operations

According to the disclosure, NEPRA issued its decision on several Motions of Leave for Review filed by different stakeholders. These reviews covered KE’s Generation Power Plants, Transmission, and Distribution businesses. They also included KE’s Consumer End Tariff and Investment Plans through FY 2030.

The decision also touched upon earlier claims under MYT 2017–2023, maintaining NEPRA’s previous stance on certain disallowed costs.

Write-Off Claims Rejected by NEPRA

NEPRA has upheld its earlier ruling that write-off claims made by K-Electric will not be admissible. Furthermore, the technical and commercial loss levels for the company have been significantly reduced, tightening operational benchmarks for Pakistan’s only vertically integrated power utility.

K-Electric to Explore Legal and Regulatory Remedies

In the disclosure, Rizwan Pesnani, Chief Risk Officer and Company Secretary at K-Electric, confirmed the company’s intent to review its options. He stated:

“K-Electric will evaluate available remedies under the applicable laws and regulatory framework.”

This indicates KE may pursue further actions or appeals under the current Securities Act, 2015, and regulatory provisions governing the power sector.

Background and Market Implications

The revision follows KE’s earlier disclosure on October 20, 2025. It reflects NEPRA’s continued scrutiny of the company’s financial and operational performance. Analysts believe the downward revision in loss benchmarks could impact KE’s revenue recoveries and investment plans, though detailed implications will unfold in the coming months.