ISLAMABAD: In a split decision, the National Electric Power Regulatory Authority (Nepra) has approved a 14% dollar-indexed return on equity (ROE) for K-Electric (KE) generation plants under a multi-year tariff extending to 2030. This decision, which faced strong opposition from Nepra’s member tariff, is tied to KE’s power plants operating on fuels like high-speed diesel (HSD) and liquefied natural gas (RLNG).
While the majority of Nepra supported KE’s request, member Mathar Niaz Rana criticized the decision as “excessive and unfair,” citing concerns over high costs and limited energy contribution. Rana highlighted that KE’s aging plants, with some nearing decommissioning, would receive high payments despite declining performance. He also opposed the 14% ROE, arguing it is unjustified for brownfield projects like KE’s.
KE welcomed the decision, stating it aligns with their 2030 investment plan without increasing consumer electricity rates under the government’s uniform tariff policy.
Story by Khaleeq Kiani
