Nepra has accepted a petition for a hearing regarding K-Electric’s proposed base tariff increase of up to Rs3.84 per unit over seven years, indexed with exchange rate and inflation. Stakeholders, including affected parties and the public, are invited to provide their feedback within seven days on this tariff petition, which aims to raise the current base tariff of around Rs32 per unit.
The proposed tariff adjustments by K-Electric cover various costs including operation & maintenance expenses, debt servicing, return on equity, depreciation, and working capital costs linked to Kibor. K-Electric’s petition aligns with the existing tariff structure allowed under the previous Multi-Year Tariff (MYT) ending in June 2023.
The investment plan approved by Nepra for K-Electric’s transmission and distribution network, amounting to Rs392 billion over seven years, aims to reduce system losses and meet future demand growth. This plan includes investments in transmission, distribution, and support systems such as defence, cyber security, and information technology.
The regulator emphasized that the uniform tariff across the country would be impacted by these changes, affecting the subsidy payments, which will be further discussed during the proceedings related to the supply tariff.
Overall, the investment plan entails several growth projects including new grid stations, transmission lines, and capacity enhancements to meet future customer demand and improve the electricity network in Karachi.
