KE reviews Nepra tariff cuts, warns of operational impact

ISLAMABAD/KARACHI: CEO of power utility K-Electric Moonis Alvi on Thursday said the company is assessing the full impact of Nepra’s latest multi-year tariff (MYT) decision for FY2024-2030, warning that the regulator’s revisions could have financial consequences that affect the company’s operations and long-term sustainability.

Alvi noted that Nepra had made significant reductions in KE’s approved MYT, despite the earlier tariff -- announced in May after two and a half years of public hearings and stakeholder consultations -- being the outcome of a comprehensive review. “Such a reversal after a detailed two-and-a-half-year consultation and analysis is unusual and could impact the company’s investment, planning, and long-term sustainability,” he said.

The KE chief said the company is carefully reviewing the decision to determine how to sustain operations effectively while minimising the impact on consumers. “Our management is making every effort to ensure customers are not affected; however, some indirect impact may occur, and every possible step is being taken to minimise it,” he added.

Alvi confirmed that the company’s board of directors has been briefed on the revised decision and discussions are underway to decide the future course of action. He emphasised that KE will “pursue the route that serves the best interests of the people of Karachi”.