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KE to Get PKR 93.7 Billion Per Year Under Newly Approved Distribution and Transmission Tariff

admin-augaf by admin-augaf
May 26, 2025
in Business, Finance
Reading Time: 2 mins read
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AsiaPak Investment Bought Stake in Fund that Holds Stake in K-Electric
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Islamabad May 26 2025: The National Electric Power Regulatory Authority (NEPRA), through its decision dated May 23, 2025, has issued determinations on KE’s transmission and distribution network tariff petitions for the seven-year control period FY 2024 to FY 2030, originally submitted in December 2023.

This latest approval follows NEPRA’s decision of KE’s generation tariff last year, reflecting sustained regulatory momentum and progress in Pakistan’s transforming power sector landscape. The company also looks forward to the timely closure of its Supply Tariff Petition along with Investment Plan review.

NEPRA approved an amount of PKR 50.2 billion under distribution tariff while PKR 43.4 billion under transmission tariff, according to newly approved tariffs.

It is pertinent to note that these determinations will not affect the electricity rates charged to customers, as these continue to be governed under the uniform tariff policy applicable across Pakistan.

This decision marks a significant milestone for KE towards realizing its comprehensive investment plan 2030 that entails the company’s efforts to further reduce losses in transmission and distribution network, drive growth in its customer base, and bolster power utility’s infrastructure to meet current demands and future needs.

While KE is evaluating the complete and extensive determination issued by NEPRA, the utility has observed the approved tariff structure includes some reductions, particularly pertaining to Return on Equity (RoE).

KE continues to work closely with the honorable Regulatory Authority to ensure that all reforms and tariff structures support a long-term vision of a stable, transparent, and future-ready energy ecosystem.

Since privatization, KE has invested over USD 4 billion to transform Karachi’s power landscape—doubling its customer base, doubling the energy delivered, and cutting line losses in half. Today, around 70% of KE’s service area is load shed exempt, underscoring the company’s commitment to reliable supply, operational excellence, and energy access for the city’s growing needs.

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