Nepra cuts K-Electric's tariff by Rs7.6 per unit

In a major setback to K-Electric, the National Electric Power Regulatory Authority (Nepra) has reduced the power company’s multi-year base tariff from Rs39.97 per unit to Rs32 per unit.

While Nepra revised the tariff downward, the power regulator upheld its previous stance on key issues—particularly the power company’s Rs50 billion write-off claims. The authority rejected requests to reverse its earlier approval of the write-off, stating there was no justification to revisit that decision.

“The petitioners have failed to convince the authority to bring desired alteration or review; thus, the review motions are accordingly dismissed,” Nepra stated in its ruling.

The move reverses Nepra’s May 27, 2025 determination, which had increased K-Electric’s average base tariff by Rs6.15 per unit—an 18.18 percent jump—to Rs39.97 per unit for the fiscal year 2023–24. The multi-year tariff, officially notified on July 18, 2025, covers KE’s supply, distribution, and transmission operations through FY2030.

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In a press statement issued after the announcement, K-Electric said Nepra’s decision addressed motions submitted by various parties regarding its multi-year tariff (MYT) determinations for FY2024–2030.

It said that the decision covers several key areas, including MYT determinations for KE’s generation power plants, transmission and distribution networks, and supply business for FY2024–2030, as well as the investment plan and losses assessment for the same period..

K-Electric expressed concern that Nepra’s latest revisions could destabilise the company’s long-term financial plans.