K-Electric, the city's sole power distributor, has clarified that the recent tariff reduction announced by the National Electric Power Regulatory Authority (NEPRA) does not apply to customer billing and will therefore not affect consumer electricity bills.
In a statement, the power utility spokesperson said that the tariff revision announced under Nepra's multi-year tariff (MYT) determination for the fiscal years 2024 to 2030 does not apply to customer billing.
"The recent announcement by the regulator is not applicable to customer bills. Therefore, there is no change or reduction in what customers will be charged," the spokesperson said.
The clarification comes after Nepra slashed KE's average tariff by Rs7.6 per unit — from Rs39.97 to Rs32.37 per kilowatt-hour — following a review petition filed by the Power Division. The decision revises the power purchase price and other tariff components under KE's multi-year tariff (MYT) regime for 2024-30, The News reported.
Earlier, in May 2025, Nepra had approved a base tariff increase of Rs6.15 per unit — an 18.18% jump — setting KE’s average rate at Rs39.97 per unit for FY2023-24. Now, the regulator has not only reversed that hike but added a further reduction of Rs1.45 per unit, bringing the total cut to Rs7.6 per unit.
The power utility warned that the latest decision on review motions has significantly altered its earlier determinations — a move the KE warned would have significant consequences for the company’s financial health, its stakeholders, including consumers.
KE further said it was “reviewing Nepra’s decisions in detail and will exercise all available remedies as permitted under the applicable laws and regulatory framework.”