K-Electric CEO Moonis Alvi responds to revised multi-year tariff

K-Electric’s Chief Executive Officer (CEO) Moonis Abdullah Alvi responded to the NEPRA’s decision regarding the revision of Multi-Year Tariff (MYT).

In his statement, K-Electric CEO said that NEPRA has made significant changes and reductions in K-Electric’s Multi-Year Tariff.

He noted that the tariff announced earlier in June this year was issued after two and a half years of consultations, research, scrutiny, and verification of data from independent sources.

He expressed concern that the Multi-Year Tariff, finalized after extensive deliberation over two and a half years, has now been completely altered within just a few months. K-Electric, he said, is currently reviewing how to sustain its operations under the revised tariff structure.

Alvi warned that the substantial cuts in the Multi-Year Tariff could impact electricity consumers.

He assured that the company’s management is making every possible effort to minimize the impact on consumers, though some effects of the reduced tariff are inevitable.

The K-Electric CEO further stated that the company’s management has briefed the Board of Directors regarding the revised tariff issued after the reductions.

It is pertinent to mention here that the NEPRA on Tuesday reduced K-Electric’s (KE) average base tariff by Rs7.6 per unit — from Rs39.97 to Rs32.37 per unit — following a detailed review of the company’s Multi-Year Tariff (MYT) for FY2024–FY2030.

The decision came on a petition filed by the Power Division, along with multiple review motions regarding earlier MYT determinations.

The revised determination covers several aspects, including KE’s generation, transmission, distribution, and supply businesses; the Transmission and Distribution Investment Plan and Losses Assessment for FY2024–FY2030; and write-off claims for MYT 2017–2023.

NEPRA upheld its earlier stance on KE’s Rs50 billion write-off claims but made amendments in several tariff-related areas.