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KE gets stay against Power Division’s backed controversial supply tariff determination

by AMG
November 4, 2025
in Energy
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Asian Development Bank terms K-Electric financially sustainable company
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KARACHI : The Sindh High Court (SHC) has issued a stay order against the recently determined “controversial” Multi-Year Tariff (MYT) of K-Electric, which had reduced the utility’s supply tariff by Rs7.60 per unit—from Rs39.97/kWh to Rs32.37/kWh.

The power utility was represented by a team of lawyers including Farogh Naseem, Pooja Kalpna, Barrister Sagar Ladhani, Syed Irfan Ali Shah, Hurmat M. Soomro, M. Maaz Ali Zai, and Nabeeta Hassan, Legal Advisor to K-Electric.

K-Electric’s counsel argued that the company was aggrieved by the decisions made by the National Electric Power Regulatory Authority (NEPRA) on October 20, 2025, regarding review applications filed by individuals who were not party to the original proceedings before the regulator.

The original NEPRA determinations—issued on K-Electric’s applications—were dated October 22, 2024 (generation tariff), May 23, 2025 (transmission and distribution tariff), and May 27, 2025 (supply tariff). These decisions were to be notified by the federal government as directed. However, subsequent review applications were filed by different individuals seeking to recall those orders.

Although NEPRA dismissed all review applications through its October 20, 2025 decision, it simultaneously took suo motu notice of its earlier determinations and revised the tariff downward to Rs32 per unit.

K-Electric’s counsel contended that if the federal government notifies the revised tariff—within the 30-day statutory period—the company would face colossal financial losses, potentially forcing it to suspend operations temporarily. The counsel further argued that NEPRA took suo motu action without providing notice to K-Electric, thus violating due process.

He informed the court that an appeal had been filed before the NEPRA Appellate Tribunal under Section 12-G of the NEPRA Act, 1997. However, since the tribunal is currently non-functional, the petitioner fears coercive action by the federal government or NEPRA in the meantime. He cited legal precedents reported in 2003 PTD 1246 and PLD 1997 SC 582 in support of the petition.

According to the SHC’s interim order, “Contentions raised require consideration. Let notice be issued to the respondents as well as the Additional Attorney General for November 19, 2025. Meanwhile, no coercive action shall be taken against the petitioner in terms of the impugned decision till the next date of hearing.”

The SHC office was directed to place a copy of this order in all connected petitions. Ends

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