SHC Suspends Tariff Orders In K-Electric Case

The Sindh High Court has suspended tariff orders issued by the NEPRA Appellate Tribunal and related notifications in a case concerning K-Electric’s tariff. The court admitted appeals challenging the tribunal’s September 23, 2026 decision and sought responses from NEPRA and other parties.

The case was heard in Karachi, where the court issued notices and adjourned further proceedings until October 15. The order means the disputed tariff-related decisions will remain under judicial scrutiny until the court hears the parties in the next round of proceedings.

During the hearing, counsel argued that NEPRA has the authority to review its earlier decisions but cannot determine the tariff afresh. The argument placed the focus on the limits of the regulator’s powers and whether the steps taken in the tariff matter were legally sustainable.

The lawyer further argued that NEPRA used its suo motu powers to alter the tariff, which was described as unlawful. That point is central to the appeals because it challenges not only the outcome of the tariff decision but also the process through which the regulator acted.

According to details presented before the court, the supply tariff was determined on May 27, 2025, while the generation tariff was determined on October 22, 2024. The distribution and transmission tariff was determined on May 23, 2025, making the dispute part of a broader tariff framework rather than a single billing issue.

The counsel also submitted that K-Electric’s tariff is determined by NEPRA and reviewed after every seven years. This argument appears aimed at questioning whether fresh changes could be made outside the regular review structure or through the mechanism used by the regulator.

The case comes as electricity pricing remains a sensitive issue for consumers in Karachi and across Pakistan. Separately, NEPRA had recently increased electricity tariff by Rs1.11 per unit for one month under the August fuel price adjustment, with the additional amount to be recovered through October bills.

The next important step will be the October 15 hearing, when NEPRA and other parties are expected to respond. The court’s handling of the matter could affect how tariff decisions are reviewed, challenged and implemented, particularly where consumers and distribution companies dispute regulatory actions.