Islamabad:
In a bold claim of its legislative autonomy, Pakistan’s Power Watchdog has informed K-electric’s long-term multi-year tariffs for supply, distribution and transmission through 2030-on despite an unresolved review movement from the federal government.
The power regulator has notified RS6.15 per year. Unity Increase in Basic Ariff for KE consumers. The government implements uniform across the country, and the government provides grants to KE consumers to implement uniform duties.
The National Electric Power Regulatory Authority (NEPRA) went on with the message after determining that no legal bar existed to stop implementation. It called for its improved powers during a change of law in 2021, which allows the regulator to issue customs reviews directly – authority that previously rests with the federal government.
The landmark feature reflects pressure from international lenders, especially the IMF and the World Bank, to depoliticize customs and fixed-track electricity sector reforms.
“This situation may impair KE’s economic health and undermine continuity of the power supply, which ultimately affects consumers and the wider energy market,” Nepra warned in his statement.
The newly reported average power supply stariff for KE stands on RS 39.97 per year. Kilowatt-time for 2023-24, consisting of RS 31.96/kWh in power purchase costs, RS 2.86 for transmission, RS 3.31 for distribution and RS 2.28 as a supply margin. A previous year’s adjustment of minus RS 0.44/kWh is also included.
Nepra estimated KE’s total revenue needs for FY 2023-24 to 606.9 billion Rs, with RS34.7 billion awarded to the Supplies Margin and RS 36.2 billion devoted to cover recovery loss.
Despite the formal customs clearance, KE’s economy remains under serious pressure. As Bill Recovery slipped to 91.5 PC in FY 2023-24 and is expected to fall to 90.5 PC next year, the tool could face cumulative under-wreaths approaching RS97 billion over two financial years. NEPRA warned that KE’s allowed RS21.6 billion returns on distribution operations can be wiped out without state aid or adjustments.
At the same time, NEPRA approved a distribution stariff of RS 3.31/kWh and RS 2,684/kWh specifically in support of an RS 43.4 billion investment plan over the seven -year multi -year customs period.
The government had challenged K-electric’s multi-year customs (2024-30) approved by Power Regulator last week, claiming the tool gained an unnecessary benefit to RS750 billion in the seven-year period at the expense of national tax, power consumers across the country and taxpayers as a whole.
In a statement, the Power Division had announced that the six customs interventions allowed by NEPRA to KE, led to an economic effect of RS453 billion. Spread over seven years.
On top of that, the division added that a fuel cost impact higher than the national average for 2024-25 alone meant an additional cost of RS41 billion, which, although remaining flat, would be translated into RS287 billion. In seven years.
The department said the government’s position was to seek review of the NEPRA decision to ensure justice and uniformity, duty must reflect actual costs and reasonable returns to protect consumers and there should be no extra allowance for inefficiency.
