ISLAMABAD: National Electric Power Regulatory Authority (Nepra) is set to hold a public hearing on May 12, 2026, on a request by K-Electric (KE) seeking adjustment of claims exceeding Rs58 billion under its seven-year Multi-Year Tariff (MYT) for FY2017–2023, after a delay of about three years.
According to a notice issued by Nepra, KE sought an End of Term Adjustment (EoTA) amounting to Rs43.6 billion under its MYT determination.
The major components of this claim include Rs23.4 billion on account of working capital costs, Rs11.05 billion due to exchange rate impact on return on equity, and Rs10.4 billion linked to adjustments in working capital requirements.
READ MORE: Seven-year MYT covering FY2017–2023: KE seeks claims adjustment of over Rs58bn
However, Rs1.3 billion has been deducted on account of investments not incurred.
In addition to the EoTA, KE has requested Rs15.3 billion under tax pass-through and other adjustments. This includes Rs7.5 billion for taxes paid in 2023, Rs3 billion as additional tax liability for 2022, and Rs4.1 billion related to minimum tax for the period 2018–2021. Smaller claims comprise Rs461 million under WWF/WPPF pass-through and Rs261 million in pending adjustments related to power purchases.
In a letter dated October 9, 2023, KE referred to its earlier communication of August 4, 2023, through which it had submitted its quarterly tariff variation for April to June 2023. The utility informed the regulator that its auditors had completed verification of write-off claims for FY2023.
KE also requested adjustments under the End of Term Adjustment mechanism as required by Nepra in its MYT determination for FY2017–2023 and the Mid-Term Review (MTR) determination issued on March 1, 2022. Accordingly, the utility sought revision of the submitted quarterly tariff variation.
The utility highlighted that the MYT for FY2017–2023 remained applicable until June 30, 2023. It added that tariffs for generation, transmission, distribution and supply segments had already been determined by Nepra following approval of its investment plan, wherein around Rs500 billion was cut from the allowed tariff increase on the motion of the federal government.
KE requested the regulator to incorporate unrecovered costs for the April–June 2023 quarter, along with end-of-term adjustments and write-off claims, into the tariff schedule to be determined under the new MYT effective from July 1, 2023.
On July 7, 2025, KE further submitted claims amounting to Rs10.963 billion on account of pending tax/WPPF pass-through under the MYT 2017–2023, along with Rs261 million related to pending adjustments for power purchases from independent power producers.
Copyright Business Recorder, 2026
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