ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on May 12, 2026, to consider a tariff adjustment request exceeding Rs58 billion filed by K-Electric (KE) under its seven-year Multi-Year Tariff (MYT) for FY2017–2023, following a delay of nearly three years.
According to the regulator’s notice, KE has sought an End of Term Adjustment (EoTA) of Rs43.6 billion. The claim includes 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 revised working capital requirements. However, Rs1.3 billion has been deducted for investments not materialized.
In addition, 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 2018–2021 period. Other components include Rs461 million under WWF/WPPF pass-through and Rs261 million in pending power purchase adjustments.
In its submissions, KE noted that its MYT for FY2017–2023 remained effective until June 30, 2023, and that its auditors had verified write-off claims for FY2023. The utility also referenced earlier filings related to quarterly tariff variations for April–June 2023 and subsequent revisions in line with regulatory requirements.
KE further requested the incorporation of unrecovered costs for the April–June 2023 quarter, along with EoTA and write-off claims, into the tariff schedule under the new MYT effective from July 1, 2023.
The utility also submitted additional claims on July 7, 2025, amounting to Rs10.96 billion related to pending tax and WWF/WPPF pass-through, along with Rs261 million for outstanding power purchase adjustments.
The upcoming hearing is expected to play a key role in determining whether these claims will be passed on to consumers or adjusted within the broader tariff framework.
Story By Mushtaq Ghumman
