ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has rejected the federal government’s request to apply a revised uniform Schedule of Tariff (SoT) to K-Electric (KE), based on the previously determined tariff for the January–March 2023 quarter—a move likely to frustrate the Power Division.
NEPRA’s decision was revealed in a determination issued on Tuesday, which outlines a revised average uniform SoT of Rs 31.59/kWh for both power Distribution Companies (Discos) and K-Electric for the fiscal year 2025–26. This rate marks a reduction from the earlier Rs 32.73/kWh (excluding duties and taxes), reflecting an average decrease of Rs 1.14/kWh after factoring in a budgeted Tariff Differential Subsidy (TDS) of Rs 250 billion for FY 2025–26.
In its formal request (Motion for Leave), the Power Division argued that under government policy, a uniform consumer-end tariff should be maintained across K-Electric and state-owned Discos—even post-privatization—through a mix of direct and indirect subsidies. To achieve this, the KE tariff should be modified to align with NEPRA’s approved national uniform tariff structure, incorporating the proposed targeted and cross subsidies.
The Power Division also referenced legal provisions—Section 7, 31(4), and 31(7) of the NEPRA Act and Rule 17 of the relevant rules—supporting its appeal for revised consumer-end tariff recommendations for K-Electric, to be effective from July 1, 2025. The motion included a request to update the SoT via an amendment to SRO No. 575(1)/2019.
During the hearing, K-Electric’s Director of Finance, Ayaz Jaffer, urged NEPRA to use KE’s most recent tariff (determined on May 27, 2025) instead of the older Jan–Mar 2023 rates to establish the uniform tariff. However, Naveed Qaiser of the Power Planning and Monitoring Company (PPMC) opposed the suggestion, pointing out that the federal government has already filed a review petition against the newer KE tariff determination. Therefore, he argued, the Jan–Mar 2023 tariff should be treated as the valid benchmark.
Ultimately, NEPRA decided not to accommodate the Power Division’s request. In its official determination, the regulator stated that despite the federal government’s plea to use the Jan–Mar 2023 KE tariff as the basis for a uniform SoT, it opted to apply the rates from KE’s latest approved tariff for FY 2023–24, as issued on May 27, 2025.
When contacted for comments, a senior official of Power Division stated that they have yet to review the determination, indicating that NEPRA may be reproached in this regard.
Rehan Jawed also opposed the use of the expired 2023–2024 tariff in K-Electric’s SOT during the hearing and questioned whether any difference, if settled later, would be imposed on consumers as a surcharge. As discussed in the FCA hearing, there is no legal restriction on applying the new K-Electric MYT, since the government’s review petition on KE MYT does not amount to a stay order
Ends
