The National Electric Power Regulatory Authority (NEPRA) has approved K-Electric’s (KE) new Multi-Year Tariff (MYT) for transmission and distribution (T&D) network segments for FY2024 to FY2030 (MYT Period).
The power utility company announced the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.
The listed company submitted its application for MYT (T&D segments) to NEPRA on December 27, 2023, after NEPRA approved the investment plan for this tariff period.
“Pursuant to investment plan approval for the MYT period, KE had applied to NEPRA for approval of MYT for transmission and distribution network segments on December 27, 2023, in accordance with Rule 3(1) of NEPRA (Tariff Standards and Procedure) Rules, 1998.”
K-Electric stated it is currently reviewing the approved tariff in detail “and will exercise available remedies, if required, in accordance with the statutory provisions”.
Meanwhile, the MYT for supply segment and motion for review of approved investment plan for the MYT period “is currently under determination of NEPRA,” said KE.
The power utility added that approval of the supply segment and resolution of the motion for review are crucial for K-Electric’s financial statements after June 30, 2023.
KE requested a tariff control period of seven years (FY 2024 to FY 2030), consistent with previous allowances and the approved investment plan for transmission and distribution (T&D). A sustainable long-term tariff is crucial for financing and equity investment, as lenders require clear revenue and profitability forecasts.