Syed Moonis Abdullah Alvi, K-Electric (KE) Chief Executive Officer (CEO), has termed the latest tariff determination by the National Electric Power Regulatory Authority (NEPRA) as “unprecedented”, warning that the sharp reduction in rates could impact the company’s operations.
In a video message released on Thursday, Alvi said the power utility is assessing the implications of the revised tariff and exploring all available options.
“The tariff of NEPRA is unprecedented for us,” he said.
“The original tariff came in June 2025; it took two and a half years to determine it. Between June and now, it has been revised and substantially reduced. We are seeing how we will run K-Electric with this tariff and manage supply.”
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The response comes days after NEPRA’s review of the federal government’s petition against its earlier determination, which resulted in the reduction of KE’s multi-year base tariff for the FY2024–FY2030 period.
The regulator slashed its average tariff to Rs32.37/kWh, replacing the earlier determination of Rs39.97/kWh announced on May 27, 2025.
Alvi said that the KE and its team are analysing the impact of NEPRA’s decision. “Obviously, we will try to keep the supply uninterrupted, but when there is such a financial impact, it can have an impact on our operations,” he said.
Alvi added that KE is also looking at all the options with this new tariff. “We will do our best for ourselves and the people of Karachi,” he concluded.
Earlier on Tuesday, the power utility, in its notice to the Pakistan Stock Exchange (PSX), said that NEPRA’s decision, “would not be sustainable for KE and would also have significant consequences for its stakeholders, including its consumers”.
According to the new determinations, Nepra has upheld its previous decision on KE’s write-off claims amounting to Rs50 billion, stating that the Authority “finds no reason to modify or alter the impugned decision.”
However, the regulator has made amendments in certain aspects of its earlier determinations related to transmission, generation, and supply tariffs.
Analysts estimate that K-Electric could face a negative earnings impact of approximately Rs79 billion, translating into a loss per share of Rs2.9, for FY24 following the revisions in its previously determined tariff.
“Our estimate assumes revisions in ROE payments, T&D losses at 16% and a recovery ratio of 91.5%, compared to NEPRA’s benchmarks of 9.71% and 100%, respectively, for FY24,” said AKD Securities in its latest report.
“We expect the company to restate FY24 financials accordingly,” the brokerage house added.
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