KARACHI: The Sindh High Court on Thursday suspended tariff orders issued by an appellate tribunal and related notifications from the National Electric Power Regulatory Authority (NEPRA), handing K-Electric a significant reprieve in a dispute over how the utility's rates are set.
The court admitted K-Electric's appeals against a Sept. 23, 2026, decision by the NEPRA Appellate Tribunal in Islamabad for hearing. It issued notices to NEPRA and the other parties in the case and adjourned proceedings until Oct. 15.
Barrister Ayan Memon, representing the appellant, argued that NEPRA has the power to review a tariff but cannot determine one afresh. He said the regulator exercised suo motu authority, meaning it acted on its own initiative, to make changes to the tariff, and that doing so was illegal.
NEPRA's position, as presented in court, is that it sets K-Electric's tariff and that the tariff is subject to review every seven years.
During arguments, the court heard that NEPRA determined the tariffs for 2024 through 2030 in stages. The generation tariff was set on Oct. 22, 2024. The distribution and transmission tariffs followed on May 23, 2025, and the supply tariff on May 27, 2025.
K-Electric Limited (KE) acknowledges the orders of the Honorable High Court of Sindh dated 7th October 2026, wherein the Court has issued notices to the respondents and, in the interim, suspended the impugned notifications and orders concerning the review of KE’s Multi-Year Tariff (FY24 – FY30).
KE had approached the Honorable High Court challenging the judgments of the NEPRA Appellate Tribunal dated 23rd September 2026, NEPRA’s review determinations dated 20th October 2025, and the subsequent notifications issued by NEPRA and the Ministry of Energy (Power Division).
The Company’s position before the Court is that while NEPRA holds the authority to review a tariff determination, such a process cannot amount to a fresh re-determination of the tariff. KE has further maintained that the review determinations translated into a substantial adverse impact on the Multi-Year Tariff (MYT) of KE for the control period from FY2024 to FY2030 and therefore, it is not considered as financially sustainable.
The High Court observed that the points raised merit consideration, suspended the impugned notifications and orders in the interim, and fixed the matter for hearing.
KE will continue to pursue the matter through appropriate legal and regulatory forums. KE remains committed to working towards a fair, cost-reflective, and sustainable tariff framework that protects consumers while ensuring the long-term reliability and viability of Karachi’s power infrastructure.
