NEPRA Tariff Cut Raises KE Sustainability Concerns

K-Electric has raised concerns over the recent NEPRA tariff cut. The power utility fears it may harm long-term operations and service reliability.
NEPRA reduced KE’s average power tariff from Rs39.97/kWh to Rs32.37/kWh. The change replaces the earlier decision announced in May 2025.

KE Issues Warning

KE informed the Pakistan Stock Exchange on Tuesday about the potential impact. It said the revised tariff “would not be sustainable for KE.”
The company added that this decision could affect its financial position and its ability to serve customers effectively. Therefore, KE is currently reviewing the ruling in detail.
In addition, the utility plans to explore all legal options within the current regulatory framework.
The decision follows NEPRA’s review of a federal government petition. As a result, the base tariff for KE from 2024 to 2030 has been adjusted downward.

Write-Off Rejected

NEPRA also addressed KE’s request for a Rs50 billion write-off. However, the regulator upheld its earlier stance, saying there was “no reason to modify” the previous ruling.
At the same time, NEPRA revised other areas of the earlier decision. These updates include changes to generation, transmission, and supply tariff structures.
The review was prompted by several submissions. These came from the Power Division, Jamaat-e-Islami Karachi, Tanveer Barry, Arif Bilwani, and MNA Syed Hafeez Uddin.
KE warned that such a sharp tariff reduction could delay investments in infrastructure. It may also impact upgrades needed for reliable power supply in Karachi.
As a result, the company sees this as a critical issue for its consumers and partners. More discussions are expected in the coming weeks.
The outcome of this decision could shape the future of Karachi’s power supply. Both regulators and consumers are watching closely.