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Sindh High Court Issues Stay Order Against K-Electric’s Recently Determined Multi-Year Tariff (MYT)

The Sindh High Court (SHC) has issued a stay order against K-Electric’s recently determined, controversial Multi-Year Tariff (MYT). The tariff decision had reduced the power supply rate by PKR 7.60 per unit, decreasing it from PKR 39.97 per kilowatt-hour (kWh) to PKR 32.37 per kWh.

Appearing for K-Electric, Advocates Farogh Naseem, Pooja Kalpana, Barrister Sagar Ludhani, Syed Irfan Ali Shah, Hurmat M. Soomro, M. Muaz Ali Zai, and the company’s Legal Advisor, Nabita Hassan, presented arguments against the NEPRA decision.

K-Electric’s counsel argued that NEPRA issued its decisions on review petitions on October 20, 2025, from individuals who were not a part of the original proceedings. Following the company’s application, NEPRA had initially determined the Generation Tariff on October 22, 2024, the Transmission and Distribution Tariff on May 23, 2025, and the Supply Tariff on May 27, 2025, which were pending formal notification by the Federal Government. Subsequently, various individuals filed review petitions against these determinations.

The counsel explained that although NEPRA rejected all review petitions in its October 20, 2025, order, it surprisingly took suo motu notice of its own previous decision and re-determined the tariff at PKR 32 per unit.

K-Electric’s lawyer informed the court that if the Federal Government notifies this new tariff within 30 days, the company will face severe financial losses and may potentially have to suspend operations for a period. They further argued that NEPRA did not issue any notice to the company when taking suo motu notice, and while an appeal against the decision has been filed before the NEPRA Appellate Tribunal, there is a threat of coercive measures by the Federal Government or NEPRA because the Tribunal is currently non-functional.

The court issued the stay order, noting that the points raised by the petitioner are considerable. Therefore, notices are to be issued to the respondents and the Additional Attorney General for November 19, 2025. During this period, the decision is not to be implemented, and no coercive action shall be taken. The court office was directed to attach a copy of this order with the relevant petitions.

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