National Electric Power Regulatory Authority (NEPRA) has given the green light for K-Electric’s new generation tariff, effective after June 30, 2023. The approval includes a 7-year tariff control period, or the remaining useful life of the power plants—whichever is shorter—except for BQPS-III, which gets 11 years. Although the tariff approved, it won’t change the electricity rates for consumers, as those are regulated under Pakistan’s uniform tariff policy.
K-Electric had initially filed its tariff request in December 2022, and NEPRA’s decision came after a long 22-month wait. The newly approved rates vary across different plants:
- BQPS-I: Rs 38.08 per unit
- BQPS-II: Rs 36.76 per unit
- KCCPP: Rs 38.03 per unit
- KTGEPS: Rs 39.02 per unit
- SGEPS: Rs 39.68 per unit
- BQPS-III: Rs 24.36 per unit
NEPRA granted K-Electric a 14% dollar-based Return on Equity (ROE), lower than the 15% requested but consistent with what independent power producers (IPPs) get. While K-Electric had aimed for a longer tariff control period for its power plants, NEPRA capped it at 7 years or the plants’ remaining lifespan. The only exception BQPS-III, which got 11 years instead of the 30 years initially requested.
As per the new guidelines, payments will depend on the hourly availability of each power unit, and K-Electric will be responsible for arranging fuel. If the plant is unavailable due to fuel shortages or other issues, capacity payments won’t made.
The reference rates for RLNG, gas, and other fuels have set, but adjustments will made quarterly based on changes in the market. NEPRA’s decision also outlines how various loans linked to BQPS-III will adjusted for exchange rate fluctuations and interest rates to ensure financial stability.
 has given the green light for K-Electric’s new generation tariff, effective after June 30, 2023. The approval includes a 7-year tariff control period, or the remaining useful life of the power plants—whichever is shorter—except for BQPS-III, which gets 11 years. Although the tariff approved, it won't change the electricity rates for consumers, as those are regulated under Pakistan's uniform tariff policy.){kind=link}