The National Electric Power Regulatory Authority (Nepra) has accepted K-Electric’s petition for a base electricity tariff hike of up to Rs3.84 per unit, spanning from July 1, 2023, to June 30, 2030. This increase is tied to an investment plan worth Rs392 billion recently approved by Nepra. The proposed tariff adjustments include factors such as inflation, exchange rates, and operational costs, aiming to cover expenses like operation and maintenance, debt servicing, return on equity, depreciation, and working capital.
Nepra’s decision to consider this tariff increase comes after reviewing K-Electric’s Multi-Year Tariff (MYT) petition for distribution tariffs, which outlines a structured approach covering various cost elements. The proposed investment plan targets improvements in K-Electric’s transmission and distribution networks, including investments in cyber security, information technology, and resource planning over the next seven years.
This move by Nepra has implications for the national average base tariff and subsidies, as K-Electric’s new rates would be factored into the overall tariff structure across the country. The decision also reflects Nepra’s focus on balancing the need for infrastructure development with the impact on consumers and government subsidies.
Story by Khaleeq Kiani
