Overview
- Power Division said NEPRA’s revised multi‑year tariff blocks KE from loading unverified unpaid bills onto consumers, requiring proof before any receivables are passed through.
- The determination removes dollar‑linked returns and caps profits on a rupee basis, aligning KE’s allowed earnings with domestic market conditions.
- Idle or non‑operational KE plants are excluded from tariff calculations and slated for retirement so their fixed costs are not charged to users, with officials adding that sufficient, cheaper national‑grid power is available.
- Authorities highlighted that KE is drawing about 2,000 MW from the national grid and that uniform national tariffs and subsidies remain in place, with safeguards to prevent public subsidy from turning into private gain.
- KE and industry voices warned the reported Rs7 per unit cut and tighter loss targets could strain finances and deter investment, as KE reviews operations to limit customer impact and critics question implications for privatization.