Islamabad: The National Electric Power Regulatory Authority (NEPRA) has issued its decision on K-Electric’s (KE) generation tariff petition for the control period following June 2023. The decision, dated October 22, 2024, addresses the tariff structure for KE as the company progresses with its ambitious investment plans aimed at enhancing Karachi’s power infrastructure.

According to K-Electric, the decision from NEPRA is pivotal as it supports KE’s “Comprehensive Investment Plan 2030,” which is designed to reduce transmission and distribution losses, expand the customer base, and improve the overall power infrastructure to meet both current and future needs of the city. It is important to note that this tariff determination will not affect the electricity rates charged to consumers, as these are governed under Pakistan’s uniform tariff policy.

The NEPRA decision includes some adjustments in the tariff, notably reductions in Operation and Maintenance (O and M) costs, Return on Equity (RoE), and changes to the control period terms. While KE is currently reviewing the extensive details of NEPRA’s determination, the utility has expressed its commitment to aligning these changes with its strategic goal of building a stable and sustainable energy ecosystem.

KE remains in active discussions with NEPRA to finalize the tariffs for distribution, transmission, and supply, along with reviewing the investment plans associated with these areas. Since its privatization, KE has invested over USD 4 billion in developing Karachi’s power sector. These investments have notably doubled the number of customers, doubled the energy supplied, and halved the line losses, making 70% of KE’s network load-shed free as of today.