Islamabad May 29 2025: The Ministry has observed some serious concerns regarding NEPRA’s multiple decisions about K-Electric’s licenses for Generation, Transmission, Distribution, and Supply, states Awais Leghari Minister for Power.
These decisions also touch upon the investment plan for the upcoming multi-year tariff period.
These rulings have significant long-term effects on consumer tariffs and the Federal Government’s subsidies within a uniform tariff regime.
The Ministry is planning to review the recently issued determinations related to transmission, distribution, and supply. Meanwhile, a reconsideration of the earlier generation tariff decision is awaiting NEPRA’s attention, despite being submitted back in December 2024.
This delay poses serious financial implications for the power sector and its subsidies.
Additionally, if certain areas are not addressed, they could negatively impact consumers and the regulatory environment, potentially hindering Pakistan’s efforts to encourage private participation in the distribution sector.
“Company has been allowed an ascending recovery ratio starting from 93.25% for FY24 to 96.5% up to FY30” states Muhammad Ali research analyst at AKD Securities.
“The company had previously been allowed a US$-based ROE of 14% on its generation fleet, while ROE of 14% (29.68% in PkR terms) and 12% (24.46% in PkR terms) were allowed on distribution and transmission functions, respectively, for FY24” Ali added in its note.
“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” states K-Electric.
