K-Electric CEO Moonis Alvi Responds to Revised Tariff

Karachi: K-Electric Chief Executive Officer Moonis Abdullah Alvi has voiced concern over the National Electric Power Regulatory Authority (NEPRA)’s recent decision to revise and reduce the company’s Multi-Year Tariff (MYT).

In a statement, Alvi said that NEPRA’s latest determination has brought major changes and cuts to the tariff structure that was initially announced in June this year after more than two and a half years of consultations, analysis, and independent verification.

He noted that a tariff developed through such an extensive process has now been significantly altered within just a few months, adding that K-Electric is reviewing the implications of the revised tariff on its operations.

The CEO warned that these reductions could affect electricity consumers, though he assured that the company is making every possible effort to minimize the impact on the public.

Alvi also confirmed that K-Electric’s management has briefed its Board of Directors regarding the changes in the newly issued tariff.

Earlier this week, NEPRA reduced K-Electric’s average base tariff by Rs7.6 per unit—from Rs39.97 to Rs32.37 per unit—after a detailed review of the company’s MYT for FY2024–FY2030.

The decision followed petitions and review motions filed by the Power Division and other stakeholders. The revised determination covers generation, transmission, distribution, and supply operations, along with investment plans, loss assessments, and write-off claims from previous tariff periods.

NEPRA maintained its stance on K-Electric’s Rs50 billion write-off claims, while implementing amendments across several tariff components.

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During the hearing, the court issued notices to the involved parties. It requested written responses from all sides within one week. At the same time, the court directed Moonis Alvi to deposit a penalty of Rs 2.5 million.

Barrister Abid Zuberi, representing Alvi, argued the ombudsman lacks jurisdiction in this case. He explained that K-Electric is an interprovincial entity. According to him, federal laws should apply instead of provincial rules.