Nepra’s approval of KE's multi-year tariff (MYT) for seven years comes as an important milestone in Pakistan’s journey towards energy sector reform and long-term stability. By laying out a clear and predictable cost-side tariff structure until 2030, the decision provides much-needed regulatory certainty that will encourage private investment in critical power infrastructure. It is also important to highlight that, in the current regulatory environment, this will not impact the consumer-end tariff.
The balance struck between investor confidence and consumer protection is commendable. By pegging equity returns to the dollar, Nepra has bolstered investor confidence and will definitely send positive signals to potential investors pitching for the announced privatisation of DISCOs. Karachi, Pakistan’s economic engine, deserves a reliable and modern energy system and this new tariff structure allows both Nepra and KE to work collaboratively towards that goal.
Dr Nadeem Sarwar
Islamabad