Islamabad: The Spokesperson of the Power Division has welcomed NEPRA's review decision on K-Electric's Multi-Year Tariff (MYT), terming it a landmark development for the people of Karachi.
The Spokesperson stated that the Power Division takes pride in having filed a timely and merit-based review in the case. He clarified that some quarters are spreading misinformation to misrepresent NEPRA's review as a fiscal manoeuvre or additional burden on consumers. In reality, the Authority's determinations were guided purely by principles of equity, consistency, and sectoral sustainability.
The review aimed to align K-Electric's tariff framework with those applicable to other transmission and distribution companies. NEPRA's decision eliminated elements inconsistent with national regulatory standards, such as foreign currency-indexed returns and excessive loss allowances, thereby ensuring uniform regulatory treatment based on cost recovery, efficiency, and transparency. Key reforms include converting Return on Equity (RoE) from USD-based to PKR-based and rationalizing TandD losses in accordance with sectoral benchmarks.
The Spokesperson emphasized that claims suggesting Karachi consumers were deprived of 'relief' fundamentally misunderstand Pakistan's tariff mechanism. K-Electric's MYT relates to the company's internal revenue requirements, while consumer-end tariffs across all distribution companies are determined and notified by the Government of Pakistan under the national uniform tariff policy.
He further clarified that NEPRA's decision does not imply any 'withdrawal' or 'diversion' of subsidies for Karachi consumers. The uniform tariff subsidy remains in place, and a reduction in fiscal expenditure simply reflects prudent budget management - not resource reallocation.
Reiterating confidence in the regulator's independence, the Spokesperson underscored that NEPRA's review was conducted under its independent self-review jurisdiction, reaffirming regulatory neutrality, institutional autonomy, and commitment to the public interest.