{"id":89032,"date":"2025-10-22T17:35:14","date_gmt":"2025-10-22T12:35:14","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=89032"},"modified":"2025-10-22T17:35:14","modified_gmt":"2025-10-22T12:35:14","slug":"power-division-welcomes-nepras-review-of-k-electric-tariff","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/pakistan\/power-division-welcomes-nepras-review-of-k-electric-tariff\/","title":{"rendered":"Power Division welcomes NEPRA’s review of K-Electric tariff"},"content":{"rendered":"

KARACHI: Spokesperson of Power Division<\/a> has welcomed the review decision of NEPRA in the K-Electric Multi-Year Tariff, being a landmark decision for the people of Karachi.<\/p>\n

The Spokesperson said that the Power Division is proud of filling in a timely, merit-based review in the case.<\/p>\n

The spokesperson said that some circles are spreading negative propaganda based on misinformation to misrepresent NEPRA\u2019s review of K-Electric\u2019s Multi-Year Tariff (MYT), portraying a regulatory correction as a fiscal maneuver or consumer burden.<\/p>\n

In reality, the Authority\u2019s determinations were guided purely by principles of equity, consistency, and sectoral sustainability.<\/p>\n

The review was conducted to align the K-Electric tariff framework with those applicable to other Transmission and Distribution companies.<\/p>\n

NEPRA<\/a>\u2019s review eliminated tariff elements inconsistent with national regulatory standards, including foreign currency\u2013indexed returns, loss allowances, etc. NEPRA\u2019s review removed these, ensuring all utilities are regulated under the same principles of cost recovery, efficiency, and transparency.<\/p>\n

Return on Equity (RoE): Converted from USD-based to PKR-based, T&D Losses are rationalized, allowing of working capital as per requirement, etc. These measures rectify structural imbalances, not reduce legitimate recoveries.<\/p>\n

The circles’ claim that NEPRA\u2019s decision deprives Karachi consumers of any \u201crelief\u201d fundamentally misunderstands how electricity tariffs are applied in Pakistan.<\/p>\n

K-Electric\u2019s Multi-Year Tariff (MYT) pertains to the company\u2019s internal revenue requirements, not the consumer-end tariff.<\/p>\n

Consumer tariffs across all distribution companies, including K-Electric, are determined and notified by the Government of Pakistan under the national uniform tariff policy.<\/p>\n

Equally misplaced is the suggestion that the decision represents a \u201creallocation\u201d of resources or that the government has \u201cunplugged Rs 7 per unit in subsidy\u201d that it had been giving to electricity consumers of Karachi or to divert elsewhere.<\/p>\n

The subsidy to K-Electric consumers is still in place under a uniform tariff. The interpretation that this constitutes a subsidy diversion reflects a misunderstanding of fiscal fundamentals.<\/p>\n

A reduction in subsidy is not a diversion of funds; it simply lessens fiscal expenditure that would otherwise burden the national budget.<\/p>\n

NEPRA\u2019s review strengthens regulatory neutrality, and the decision reflected its independent self-review jurisdiction, not under any governmental directive, reaffirming institutional autonomy and commitment to public interest.<\/p>\n","protected":false},"excerpt":{"rendered":"

KARACHI: Spokesperson of Power Division has welcomed the review decision of NEPRA in the K-Electric Multi-Year Tariff, being a landmark decision for the people of Karachi. The Spokesperson said that the Power Division is proud of filling in a timely, merit-based review in the case. The spokesperson said that some circles are spreading negative propaganda […]<\/p>\n","protected":false},"author":14,"featured_media":8906,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[2753,31833],"class_list":["post-89032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan","tag-nepra","tag-k-electric-tariff"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/89032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=89032"}],"version-history":[{"count":1,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/89032\/revisions"}],"predecessor-version":[{"id":89033,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/89032\/revisions\/89033"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/8906"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=89032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=89032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=89032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}