K-Electric clarifies applicability of NEPRA's reduced tariff for customers

KARACHI: The sole distributor of power to Karachi, K-Electric, has clarified that the National Electric Power Regulatory Authority (NEPRA) reduction of the company’s tariffs today would not be applicable for the customers’ billing.

The K-electric spokesman, Imran Rana, in his clarification posted on X, said, “The recent announcement by the regulator is not applicable to customer bills.

The spokesman said that, therefore, there is no change or reduction in what customers will be charged.”

KE Spokesperson clarifies, “the recent announcement by the regulator is not applicable to customer bills. Therefore, there is no change or reduction in what customers will be charged.”

— Imran Rana, Spokesperson, K-Electric (@imranrana21) October 21, 2025

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.

The regulator directed K-Electric to make system adjustments in line with regulatory requirements and to increase reliance on low-cost national grid electricity. It also approved the closure of KE’s SGTPS and KGTPS plants, effective from September 23, 2025, stating that their tariffs will be discontinued following the next gazette notification.

NEPRA further instructed the Power Division to ensure that the shutdown of these plants does not affect the electricity supply in Karachi.

In a statement, K-Electric said NEPRA had “significantly altered its prior determinations” in a way that is “not sustainable for the company” and could have “far-reaching consequences” for both the utility and its consumers. KE added that it is reviewing the decision and will explore all available legal and regulatory remedies.