K-Electric’s Chief Executive Officer, Syed Moonis Abdullah Alvi, has expressed serious reservations over the significant tariff revisions recently announced by the National Electric Power Regulatory Authority (NEPRA). The changes, which alter the utility’s Multi-Year Tariff (MYT) framework for FY2024–30, have raised concerns about the financial sustainability of Pakistan’s only vertically integrated power utility.
In an official statement, Alvi noted that the revised tariff comes just months after NEPRA had approved the original MYT in June 2025. That tariff had been the result of an extensive, two-and-a-half-year process involving multiple rounds of consultations, data audits, and independent verifications with stakeholders and regulators. The abrupt modifications, according to Alvi, have now created significant uncertainty about the company’s ability to maintain operations at current levels.
“The Multi-Year Tariff, which was issued after two and a half years of deliberation, has been completely changed in just a few months,” Alvi said. “We are evaluating the situation to understand how K-Electric’s operations can continue effectively in light of these changes.”
The CEO added that the company’s management is now conducting a detailed financial review to assess the long-term viability of its operational model under the new tariff regime. He emphasized that while K-Electric remains committed to serving its 3.4 million customers across Karachi and adjoining areas, the latest tariff determination has put substantial strain on the company’s cost structure.
Alvi cautioned that major reductions in the MYT could have ripple effects for both the utility and its consumers, despite the company’s efforts to cushion the impact. “The administration is making full efforts to ensure that consumers are not affected, but to some extent, the effects of this reduced tariff will fall on them,” he explained.
K-Electric’s board of directors has already been briefed on the matter, and the company has confirmed that it will examine all available legal and regulatory remedies to address the implications of the revised determination. The utility maintains that the new tariff parameters are not operationally sustainable and could potentially compromise its ongoing infrastructure investments, power supply stability, and long-term service quality.
According to the company, the revisions may affect future capacity expansion and modernization plans, including ongoing efforts to enhance grid reliability and integrate renewable energy sources. The MYT framework is a critical financial tool that enables utilities to plan their operations and investments over an extended period, providing cost predictability for both the company and its customers.
However, the latest amendments by NEPRA—reportedly involving reductions in key cost allowances and modifications in return on equity metrics—are expected to challenge K-Electric’s financial flexibility. Industry experts have also raised concerns that the move could set a precedent for other regulated utilities, discouraging private sector participation in Pakistan’s power sector.
K-Electric has reiterated that it is committed to continued dialogue with the regulator to seek an equitable solution that balances the needs of consumers, investors, and the broader energy ecosystem. The company is also expected to release a detailed analysis of the financial and operational impact of the revised tariff in the coming weeks.
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