KARACHI: NEPRA has approved a multi-year tariff (MYT) for K-Electric covering the fiscal years 2023 to 2030, allowing the utility to collect over Rs43 billion under “use of system charges.”
Under the new seven-year tariff, electricity prices for K-Electric consumers will rise by an average of Rs3.31 per unit. For FY2024–25, NEPRA has set K-Electric’s distribution revenue target at Rs50.284 billion, with Rs43.447 billion approved under system charges, averaging an impact of Rs3.30 per unit.
However, NEPRA clarified that this change won’t affect current bills, as the uniform national tariff policy remains in place.
K-Electric’s requested Return on Equity (RoE) was also reviewed. NEPRA approved 14% RoE for the distribution segment (against the requested 16%) and 12% for the transmission segment (vs. 15% requested). The financial approvals are conditional on K-Electric securing formal approval for its investment plans.
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