Islamabad, 24 May, 2025: K-Electric has received regulatory approval for a revised seven-year multi-year tariff structure, covering the fiscal period from 2023 to 2030.
The National Electric Power Regulatory Authority (Nepra) granted the nod to an average increase of Rs 3.31 per unit under the revised tariff framework, which outlines projected revenues and returns for the company’s operations.
For the financial year 2024–25, K-Electric has been allocated a revenue target of Rs 50.284 billion for its power distribution network.
Additionally, the company has been authorised to utilise revenue generated through system usage charges, amounting to Rs 43.447 billion.
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These system usage charges are expected to have an impact of nearly Rs 3.30 per unit, as per Nepra’s estimate.
Nepra clarified that these adjustments in the multi-year tariff plan will not lead to immediate changes in consumer electricity bills.
The existing billing structure will remain aligned with the national uniform tariff policy, ensuring parity across all power utilities in the country.
In terms of profitability, Nepra has approved a 14% return on equity (ROE) for K-Electric’s distribution business, slightly lower than the 16% initially requested by the company. Meanwhile, for the transmission segment, a 12% ROE was sanctioned, against a proposal of 15%.
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The revised tariff structure stems from a formal public hearing held by Nepra in June last year, during which K-Electric’s proposals for adjustments in distribution and transmission charges were reviewed in detail.
Nepra added that the figures approved could be subject to revision depending on the approval of K-Electric’s broader investment plan in the future.
As K-Electric moves ahead with its long-term operational and financial roadmap, energy experts say the new tariff will influence both infrastructural improvements and service efficiency in the country’s largest metropolitan energy market.
