KE says the Nepra tariff reduction is not applicable on consumer bills

• K-Electric warns of financial shock.
• Nepra cuts base charge by Rs 7.6 per unit.
• Reviewing in detail the decisions of Nepra: KE.
  

K-Electric, the city’s sole electricity distributor, has clarified that the recent tariff reduction announced by the National Electricity Regulatory Authority (NEPRA) is not applicable to customer pricing and therefore will not affect consumers’ electricity bills.

In a statement, the power company’s spokesperson said that the tariff revision announced under Nepra’s multi-year Tariff (MYT) for the financial years 2024 to 2030 is not applicable to customer charging.

“The regulator’s recent announcement does not apply to customer accounts. So there is no change or reduction in what customers will be charged,” the spokesperson said.

The clarification comes after Nepra reduced KE’s average tariff by Rs 7.6 per unit – from Rs 39.97 to Rs 32.37 per kilowatt hour – following a review petition filed by the Power Division. The decision revises the electricity purchase price and other tariff elements under KE’s multi-year tariff (MYT) regime for the period 2024-30; The News was mentioned.

Earlier, in May 2025, Nepra had approved a base tariff hike of Rs 6.15 per unit — a jump of 18.18% — putting the average KE rate at Rs 39.97 per unit for FY2023-24. Now, the regulator has not only reversed this hike but added a further cut of Rs 1.45 per unit, taking the total cut to Rs 7.6 per unit.

The utility warned that the latest decision on the review proposals has significantly changed its previous determinations — a move that KE warned would have significant consequences for the financial health of the utility, its shareholders, including consumers.

The KE further said that it is “examining Nepra’s decisions in detail and will pursue all available remedies as permitted by the applicable law and regulatory framework.”