K-Electric flags substantial adverse impact from tribunal order

September 24, 2026 (MLN): K-Electric Limited (PSX: KEL) has said that an order passed by the NEPRA  Appellate Tribunal on its appeals against the regulator’s October 2025 decisions carries a "substantial adverse impact" on its Multi-Year Tariff (MYT) for FY2024 to FY2030, rendering the framework financially unsustainable.

The power utility said the order had not yet been formally delivered to the company.

However, following the tribunal's direction, the National Electric Power Regulatory Authority (NEPRA) notified its October 20, 2025 determinations, signaling that the tribunal did not consider the submissions of KEL’s counsel.

KEL stated it will explore legal remedies once it receives the full written order.

The development follows a long-running dispute between KEL and the power regulator.

In October 2025, NEPRA decided motions for leave for review filed against the company's MYT determinations.

It upheld its earlier stance on KEL's write-off claims for MYT 2017-2023 but drastically changed its earlier determinations on the rest, including the MYT for generation, transmission, distribution, and supply for FY2024 to FY2030, and the Transmission and Distribution Investment Plan and losses assessment for the same period.

The average tariff was cut to Rs32.37 per kilowatt-hour from Rs39.97 per kilowatt-hour set on May 27, 2025.

KEL had said the revised decisions were not sustainable for the company and would have significant consequences for its stakeholders, including consumers.

KEL subsequently filed an appeal before the NEPRA Appellate Tribunal under Section 12-G of the NEPRA Act, 1997, against NEPRA's decision of October 20, 2025.

As the tribunal was non-functional at the time, the company also filed Constitutional Petitions Nos. D-5384 to D-5387 of 2025 before the Sindh High Court, which on November 4, 2025, directed that no coercive action be taken against the company under the impugned NEPRA decision until the next hearing.

On April 7, 2026, KEL informed the PSX that the Sindh High Court had disposed of its petitions and directed the newly operational tribunal to decide the company's pending appeals within three months.

The court also kept its interim relief against coercive action in place until the tribunal's final ruling.

The aforementioned information was disseminated through a notification to Exchange.

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