K-Electric reviewing viability after major tariff cut, Says CEO

October 23, 2025 (MLN): Following NEPRA’s extensive revisions to K-Electric’s Multi-Year Tariff (MYT) for FY2024–30, the utility’s Chief Executive Officer, Syed Moonis Abdullah Alvi, has voiced serious concerns over the “large-scale reductions and modifications” made to the framework within just a few months of its original issuance.

In a statement, Alvi said that the tariff announced in June this year was finalized after two and a half years of detailed consultations, data verification, and regulatory scrutiny, involving multiple independent sources.

“The Multi-Year Tariff, which was issued after two and a half years of deliberation, has been completely changed in just a few months,” he remarked.

The CEO added that the company is now reviewing the implications of NEPRA’s revised tariff to determine how operations can be sustained under the new financial parameters.

“We are evaluating the situation to understand how K-Electric’s operations can continue effectively in light of these changes,” Alvi said.

He further cautioned that large-scale cuts in the MYT could impact electricity consumers, despite the company’s ongoing efforts to absorb the shock internally.

“The administration is making full efforts to ensure that consumers are not affected, but to some extent, the effects of this reduced tariff will fall on them,” he explained.

Alavi also confirmed that the company’s board has been briefed on the revised tariff determination issued by NEPRA.

K-Electric has stated that it will review the decision in detail and explore all remedies available under applicable laws and the regulatory framework.

The utility maintains that the new tariff structure is not sustainable for its operations and will have “far-reaching consequences” for both the company and its stakeholders.

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