The National Electric Power Regulatory Authority (NEPRA) has approved a 7-year tariff plan for K-Electric.
According to NEPRA, the approved tariff will be in effect from 2024 to 2030. K-Electric has been granted a tariff of Rs. 3.31 per unit for its electricity distribution business.
NEPRA stated that K-Electric had requested a tariff of Rs. 3.83 per unit for distribution. Additionally, a tariff of Rs. 2.98 per unit has been approved for electricity transmission.
Sources reveal that despite opposition from the federal government, K-Electric has been allowed to earn a dollar-based profit from its distribution and transmission business.
NEPRA confirmed that a 14% return on equity has been granted for electricity distribution and 12% for transmission.
During the hearing of K-Electric’s 7-year tariff application, consumers opposed the allowance of dollar-based profits, arguing that K-Electric is not an Independent Power Producer (IPP).
