NEPRA approves K-Electric’s MYT for supply segment

In a key development on the energy front, the National Electric Power Regulatory Authority (NEPRA) has approved K-Electric’s (KE) new Multi-Year Tariff (MYT) for the supply segment for FY2024 to FY2030 (MYT Period).

The power utility company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“KE would like to inform that the NEPRA has also approved MYT for supply segment for FY2024 to FY2030,” read the notice.

K-Electric had submitted its application for MYT for supply to NEPRA on December 27, 2023.

“The company is in the process of evaluating/reviewing the decision in detail and will exercise available remedies, if required, in accordance with the statutory provisions,” the notice added.

Earlier, NEPRA announced the MYT for K-Electric’s transmission and distribution network segments for FY2024 to FY2030.

“This is a welcome development. It unlocks value for the company and provides an opportunity for the integrated power utility to meet Karachi’s growing energy needs sustainably,” said market experts.

Meanwhile, KE in its notice on Tuesday informed that the decision on the motion for review of the approved investment plan for the MYT period is currently under determination by NEPRA.

The approval of the supply segment and resolution of the motion for review are crucial for K-Electric’s financial statements after June 30, 2023, the power utility said on Monday.

KE is a vertically integrated utility (VIU), providing services to the city of Karachi and its suburbs