Nepra, Centre told to reply to pleas against KE tariff rate reduction

The Sindh High Court (SHC) on Wednesday directed the National Electric Power Regulatory Authority (Nepra) to file comments on the petitions challenging Nepra’s decision on the motions for leave for review filed by various parties concerning K-Electric’s multi-year tariff (MYT) determinations for the control period of financial year 2024 to financial year 2030.

The SHC also continued the interim order restraining Nepra from taking any coercive action against KE in terms of the power regulator’s impugned judgment that reviewed the tariff rate and reduced it to Rs32.37 per unit. KE and industries have assailed Nepra’s decision.

KE’s counsel said the power company is aggrieved with Nepra’s decision on the review applications filed by individuals who were not even party in the original proceedings before Nepra.

He said Nepra had earlier ordered fixing tariff, generation tariff and distribution & supply tariff on KE’s applications, and the federal government was asked to notify the same. He also said the review applications were filed by individuals for recalling the said order. Although the review applications were dismissed, Nepra took suo motu notice of its earlier judgment by reviewing the tariff, and fixed the rate at Rs32.37 per unit, he added.

The counsel said if this tariff is notified by the Centre, which has 30 days to do so, KE would suffer colossal losses and would have to close its operations for a considerable amount of time.

He said that while taking the suo motu notice of its previous judgment, Nepra did not even put the petitioner to its notice. KE had filed an appeal with Nepra’s appellate tribunal, he added, but since the tribunal is not functional, he expressed apprehension of coercive action by the Centre or Nepra in terms of the impugned decision.

Private industries also filed petitions, saying that they are aggrieved by Nepra’s revised MYT for KE because it adds a burden of Rs28 billion on them due to the retrospective fuel adjustment charges from FY2024.

Their counsel argued that it places a massive burden on their financials that had been closed months ago. The Government of Pakistan and Nepra’s lawyers sought time to file their comments.

An SHC division bench headed by Justice Adnan Iqbal Chaudhry directed Nepra and the Centre’s counsel to file comments on the petition by December 10. The court continued the interim order restraining Nepra and the Centre from taking any coercive action against KE in terms of the impugned decision until the next hearing.

Nepra’s decision covered several key areas, including the MYT determination for KE’s power generation plants, the MYT determination for KE’s transmission, distribution (network) and supply businesses for FY2024 to FY2030, the transmission & distribution investment plan and losses assessment for FY2024 to FY2030, and the write-off claims of KE for MYT 2017-2023.

Nepra significantly altered its prior determinations, and as a result of these changes, the average tariff previously announced by Nepra at Rs39.97/KWh on May 27, 2025, has now been reduced to Rs32.37/KWh. KE said the decision is not sustainable for the company, and would have far-reaching consequences for its stakeholders, including consumers.