KE’s tariffs for 7 years: KCCI rejects Nepra’s determinations

ISLAMABAD: Karachi Chamber of Commerce and Industry (KCCI) has rejected NEPRA’s recent determinations about KE’s distribution and transmission tariffs for seven years. In a letter to Registrar NEPRA, Secretary General, KCCI has stated that it completely rejects it, as NEPRA ignored Intervenors objections, claiming that this is predominantly against the interests of the consumers.

The letter notes that Power Division strongly opposed the foreign currency linked return, arguing it was unjustified and misaligned with returns offered to state run utilities. The RoE for the transmission and distributions businesses should be aligned with returns allowed to NTDC and the Public Sector Distribution Companies (DISCOs), the Ministry stated in written comments to NEPRA.

Intervenors during the hearing and through their written submissions, opposed the grant of a US dollar-based Return on Equity (ROE) to the petitioner. They emphasized that the petitioner does not qualify as an Independent Power Producer (IPP) entitled to a dollar-based RoE with indexation under the specific policy framework applicable to IPPs. The nature of the petitioner’s business falls outside the purview of such a policy.

Additionally, the Intervenors also raised serious concerns regarding KE’s request for a USD denominated RoE. Despite these substantive objections raised by key stakeholders, the Authority has proceeded to approve a dollar-based RoE of 14% for KE’s distribution segment and 12% for its transmission business under the Multi-Year Tariff (MYT) for the period 2024-2030.

After explaining the background, KCCI expressed its strong opposition to NEPRA’s decision, which it believes disregards valid concerns and sets an unsustainable and inequitable precedent.

Copyright Business Recorder, 2025