ISLAMABAD: NEPRA has upheld a 19pc reduction in K-Electric’s average base tariff and rejected the company’s appeal, but the decision will not provide any immediate relief to around 3.5 million consumers in Karachi.
Following the decision, K-Electric’s average base tariff will remain at Rs32.37 per unit, which is Rs7.60 per unit lower than the Rs39.97 per unit tariff approved in 2025.
The revised tariff includes around Rs27.83 per unit for power purchase, Rs2.40 per unit for transmission and Rs2.90 per unit for distribution costs. It also includes a credit of around Rs0.78 per unit under supply-related costs.
The dispute dates back to May 27, 2025, when NEPRA approved an increase of Rs6.15 per unit in K-Electric’s tariff, taking the company’s tariff for FY2023-24 to Rs39.97 per unit.
K-Electric subsequently challenged the decision to reduce its average base tariff and filed appeals against NEPRA’s decisions.
The Appellate Tribunal has now rejected K-Electric’s appeal, effectively maintaining the 19pc reduction in the company’s average base tariff.
However, the tariff reduction will not directly translate into lower electricity bills for Karachi consumers, as the base tariff determination is part of K-Electric’s broader multi-year tariff framework and does not by itself constitute an immediate reduction in consumer bills.
Responding to the development, a K-Electric spokesperson said NEPRA had issued the notification of its October 20, 2025 decisions concerning the appeals filed by the company, but the written order had not yet been formally received by K-Electric.
The spokesperson said the development appeared to indicate that the Appellate Tribunal had issued its order without considering the arguments and position presented by K-Electric’s counsel.
According to the spokesperson, the development would have a “highly negative impact” on K-Electric’s Multi-Year Tariff for the FY2024-2030 control period.
The spokesperson said K-Electric was awaiting the written order of the NEPRA Appellate Tribunal and would consider available legal options after receiving the detailed judgment.
The decision keeps K-Electric’s average base tariff at Rs32.37 per unit, while the company’s position indicates that it may pursue further legal remedies after reviewing the tribunal’s written order.