NEPRA Approves K-Electric’s Multi-Year Tariff

In a significant development for the energy sector, the National Electric Power Regulatory Authority (NEPRA) has sanctioned K-Electric’s (KE) new Multi-Year Tariff (MYT) specifically for the supply segment, covering the fiscal years 2024 through 2030 (MYT Period).

The power company made this announcement in a statement submitted to the Pakistan Stock Exchange (PSX) on Tuesday.

The notice stated, “KE wishes to inform that NEPRA has granted approval to the MYT for the supply segment spanning from FY2024 to FY2030.”

K-Electric initially presented its MYT application for supply to NEPRA on December 27, 2023.

The notice further mentioned, “The company is currently in the process of thoroughly assessing the decision and will pursue any available remedies, if necessary, in accordance with legal regulations.”

Previously, NEPRA had revealed the MYT for K-Electric’s transmission and distribution network segments applicable for FY2024 to FY2030.

Market analysts commented, “This is a positive step forward. It enhances the company’s value and offers the integrated power utility a chance to sustainably address Karachi’s increasing energy requirements.”

Additionally, KE indicated in its Tuesday notice that NEPRA is still deliberating on the motion for review concerning the approved investment plan for the MYT period.

The power utility communicated on Monday that the clearance of the supply segment and the resolution of the review motion are vital for K-Electric’s financial records post-June 30, 2023.

KE functions as a vertically integrated utility (VIU), delivering services to Karachi and its surrounding areas.