The National Electric Power Regulatory Authority (NEPRA) has approved a 7-year tariff for K-Electric, as reported by national media on Saturday.
According to NEPRA, the 7-year tariff approval spans from 2024 to 2030. K-Electric has been granted a tariff of Rs. 3.31 per unit for the electricity distribution business.
NEPRA stated that K-Electric had requested a tariff of Rs. 3.83 per unit for the electricity distribution business. K-Electric has been granted a tariff of Rs. 2.98 per unit for electricity transmission.
According to sources, K-Electric has been allowed dollar-based profit on its distribution and transmission business despite opposition from the federal government.
NEPRA stated that a 14% return on equity has been given for electricity distribution. According to NEPRA, a 12% return on equity has been given for electricity transmission.
Sources said that during the hearing of K-Electric’s 7-year tariff request, consumers opposed the dollar-based profit, arguing that K-Electric is not an IPP (Independent Power Producer).
