ISLAMABAD: Ignoring the Power Division’s challenge, the National Electric Power Regulatory Authority (Nepra) on Friday notified a Rs40 per unit consumer tariff for K-Electric (KE) for FY24. The tariff is based on an average five per cent unrecoverable bills and is indexed to inflation and exchange rate variations for a six-year period ending in FY30.

The newly approved multi-year tariff (FY24-FY30) for KE is over Rs8 per unit higher than the national average tariff of Rs31.59 per unit notified for the current year. This means taxpayers will bear the additional cost through the federal budget in order to maintain uniform electricity rates across the country.

“Notwithstanding the notification of the attached decision of the Authority, the consumers of K-Electric shall not be charged the tariff outlined therein; rather, they shall be charged the uniform tariff as applicable to the consumers of ex-Wapda Discos as determined by Nepra and notified under the Act from time to time, in accordance with paragraph 5.6.3 of the National Electricity Policy, 2021”, Nepra said in gazette notification issued on Friday.

Last month, the Power Division announced that it had challenged Nepra’s May 27 determination on KE’s multi-year tariff, alleging that it had extended nearly Rs750 billion in undue financial favour to the private utility over seven years — at the cost of the national exchequer, consumers across the country, and taxpayers.

In a statement issued on June 2, the Power Division said that six separate tariff interventions approved by the regulator would result in a financial impact of about Rs453bn over seven years. Additionally, the higher fuel cost benchmark for FY25 alone would result in an extra Rs41bn burden, which, even if held flat, could amount to Rs287bn over the full control period.

Despite the formal challenge, Nepra did not acknowledge the Power Division’s review petition in its gazette notification.

The Power Division further alleged that Nepra had allowed KE to include losses in its tariff that were not actually incurred, with an estimated seven-year financial impact of over Rs200bn. It maintained that only actual losses, following a proper write-off process, should be permitted.

Published in Dawn, July 19th, 2025