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2mo ago

NEPRA Cuts K‑Electric’s Multi‑Year Tariff, Tightens Loss Targets

KE says the change affects its revenue framework, not customer bills.

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Power division clarifies: No Subsidy cut for K-Electric consumers
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Overview

  • NEPRA lowered KE’s average base tariff by roughly Rs7–7.6 per unit to about Rs32–32.37 after a government-led review.
  • The regulator upheld KE’s previously approved Rs50 billion write‑off and dismissed petitions seeking to reverse it.
  • New seven‑year efficiency benchmarks include a 0.75% annual transmission loss target and a distribution loss path from 9% to about 8.03% by FY2030.
  • KE warned the revision is unsustainable for its finances, is evaluating legal and regulatory remedies, and says the MYT change does not alter current customer charges.
  • The Power Division said the review aligns KE with national standards and does not withdraw subsidies, while a separate CPPA‑G petition seeks a Re0.3681 per unit September FCA refund to be heard on Oct 29.