K-Electric has warned that NEPRA’s notification of disputed tariff decisions threatens the financial sustainability of its seven-year tariff framework. The company said it would consider legal remedies after receiving the NEPRA Appellate Tribunal’s written order.
In a September 24 disclosure, K-Electric informed shareholders, investors and market participants that NEPRA had notified its October 20, 2025 decisions. The regulator acted following the tribunal’s order on appeals filed by the utility.
K-Electric said the tribunal had not yet communicated that order to the company. Its disclosure followed an earlier announcement dated April 7, 2026.
Company questions consideration of its submissions
K-Electric raised concerns about the tribunal’s handling of arguments presented by its legal counsel.
“From this, it appears that NEPRA Appellate Tribunal has not considered the views/submissions of KEL’s counsel while passing its Order.”
That statement represents the company’s assessment while it awaits the written order, rather than an independently established finding about the proceedings.
The utility said the development would substantially affect its Multi-Year Tariff, or MYT, covering FY2024 to FY2030.
K-Electric Limited (KEL) would like to apprise its shareholders, investors and market participants that in pursuance of the Order of the NEPRA Appellate Tribunal, in the matter of appeals filed by KEL against NEPRA’s decisions dated 20 October 2025, that is yet to be communicated… pic.twitter.com/AnNjjXUOcH
— Imran Rana, Spokesperson, K-Electric (@imranrana21) September 24, 2026
“This development translates into a substantial adverse impact on the Multi-Year Tariff (MYT) of KEL for the control period from FY2024 to FY2030 and therefore, it is not considered as financially sustainable for KEL.”
Chief Risk Officer and Company Secretary Rizwan Pesnani signed the disclosure submitted to the Pakistan Stock Exchange and securities regulator.
Revised tariff falls to Rs32.37 per unit
The notification gives effect to an average base tariff of Rs32.37 per unit, according to reporting on the regulatory decision.
That represents a Rs7.60 reduction, or approximately 19%, from the earlier determination of Rs39.97 per unit.
The revised framework uses FY2024 as its base year. Subsequent adjustments account for inflation and exchange-rate movements through FY2030.
However, the reduction does not automatically translate into an equivalent cut in Karachi consumers’ electricity bills.
K-Electric customers pay tariffs under the federal government’s uniform tariff policy, which aligns their rates with those of other distribution companies.
The utility’s determined tariff instead affects its regulated revenue framework and the government’s subsidy obligations. Reports estimate the revision could reduce federal subsidy payments by around Rs200 billion over the seven-year period.
Legal dispute awaits company’s next move
The dispute extends beyond the latest notification. K-Electric challenged NEPRA’s revised determinations through appeals and constitutional petitions before the Sindh High Court.
According to earlier disclosures reported by Mettis Global, the tribunal was initially non-functional. The high court granted protection against coercive action in November 2025.
In April 2026, the court disposed of the petitions and directed the operational tribunal to decide the pending appeals within three months. It maintained interim protection until the tribunal’s final ruling.
K-Electric has now reserved its decision on further proceedings until it receives the order.
“KEL awaits receipt of the Order of NEPRA Appellate Tribunal after which it will consider adopting available legal remedies.”
