A change by Pakistan's energy regulator to the multi-year energy tariff has thrown a proposed multi-billion dollar electric company takeover into doubt. Shanghai Electric Power (SE) signed a deal September 26, 2017 to buy a 66.4% stake in Pakistan's K Electric from the UAE's Abraaj Group for $1.77bn. This was based on a tariff rate of PKR15.57 per unit, which has now been cut by the regulator, Nepra, to PKR12.07 per unit. SE's chairman has written to Nepra warning that the cut endangers the deal and the $9bn of investment in infrastructure that would accompany it.
A change by Pakistan's energy regulator to the multi-year energy tariff has thrown a proposed multi-billion dollar electric company takeover into doubt. Shanghai Electric Power (SE) signed a deal last year to buy a 66.4% stake in Pakistan's K Electric from the UAE's Abraaj Group for $1.77bn. This was based on a tariff rate of PKR15.57 per unit, which has now been cut by the regulator, Nepra, to PKR12.07 per unit. SE's chairman has written to Nepra warning that the cut endangers the deal and the $9bn of investment in infrastructure that would accompany it.