The National Electric Power Regulatory Authority (Nepra) has upheld a 19 per cent cut in K-Electric's average base tariff after the utility lost its appeal, but the ruling will not directly change bills for its roughly 3.5 million customers in Karachi. The power regulator issued the decision on Wednesday after its Appellate Tribunal rejected KE's challenge, leaving the average base tariff at Rs32.37 per unit, down Rs7.6 from the Rs39.97 approved in 2025.
The tribunal's decision ends an appeal that had remained pending for about 11 months. The new tariff comprises about Rs27.83 per unit for power purchase, Rs2.4 for transmission and Rs2.9 for distribution, while supply costs carry a credit of about Re0.78. The dispute dates back to May 27, 2025, when Nepra approved a Rs6.15-per-unit increase, or 18.18 per cent, taking KE's tariff to Rs39.97 for the fiscal year 2023-24.Nepra formally notified that the tariff on July 18, 2025, covering KE's generation, transmission, distribution and supply operations through 2030.
The increase prompted the Power Division to seek a review, while KE opposed efforts to reduce the tariff and warned that a sharp cut could undermine its financial position. KE also secured interim relief from the Sindh High Court, which barred Nepra from taking coercive action while the dispute was being contested. The tribunal's decision now leaves the Rs32.37 tariff in place unless KE pursues further legal remedies and succeeds in overturning it.For Karachi consumers, however, the practical impact is limited.
K-Electric customers will not be billed at the Rs32.37 rate, as under a federal policy introduced in 2023 to maintain uniform electricity prices across the country, the utility's consumers will continue paying rates applicable to customers of state-owned distribution companies. Nepra arrived at the revised tariff after reducing K-Electric's allowed revenue requirement for 2023-24 to about Rs519.42 billion.The review process involved petitions or concerns from K-Electric, the Ministry of Energy, state power purchaser CPPA-G and the Karachi Chamber of Commerce and Industry.
Nepra said most of the other petitioners lacked legal standing to seek a review because they were not formal parties to the original proceedings. It nevertheless examined their concerns because of the potential impact on consumers and the national treasury, including issues involving fuel costs, power purchase prices and K-Electric's solar projects.