NEPRA Approves K-Electric’s Multi-Year Tariff

The National Electric Power Regulatory Authority (NEPRA) has given the green light to K-Electric’s (KE) new Multi-Year Tariff (MYT) concerning transmission and distribution (T&D) network divisions for the fiscal years 2024 through 2030 (MYT Period).

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

The application for the MYT (T&D divisions) was initially submitted to NEPRA on December 27, 2023, following NEPRA’s approval of the investment strategy for this tariff timeframe.

“Following the approval of the investment plan for the MYT period, KE applied to NEPRA for MYT approval for transmission and distribution network divisions on December 27, 2023, as per Rule 3(1) of the NEPRA (Tariff Standards and Procedure) Rules, 1998.”

K-Electric has announced that it is carefully evaluating the recently approved tariff “and will pursue available remedies, if necessary, in accordance with legal requirements”.

In the meantime, KE mentioned that the MYT for the supply division and the motion to review the approved investment plan for the MYT period “are currently under NEPRA’s consideration.”

The power company further noted that the approval of the supply division and the resolution of the motion for review are essential for K-Electric’s financial reports following June 30, 2023.

KE had requested a seven-year tariff control period (FY 2024 to FY 2030), consistent with prior allowances and the authorized investment strategy for transmission and distribution (T&D). A reliable long-term tariff is important for financing and equity investments, as lenders demand precise revenue and profitability projections.