K-Electric Limited on Monday said that it has not been able to finalize the financial statements for the quarter ending 30 September 2023 as it is involved in negotiations with the National Electric Power Regulatory Authority (NEPRA) over tariff determinations.
In a notice to the Pakistan Stock Exchange (PSX), K-Electric said that being a listed company is required to comply with the requirements of Section 237 of the Companies Act, 2017 for approval, circulation and filing of quarterly financial statements.
It further mentioned that it is a regulated entity under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act) and prepares its financial statements in accordance with the tariff determined by NEPRA.
It said that it was awarded an integrated Multi-Year Tariff (MYT) by NEPRA for a control period of 7 years that expired in June 2023. Keeping in view the changing scenario of the power sector of Pakistan, the company is engaged with NEPRA for separate tariff determination for each business segment i.e., generation, transmission, distribution and supply segments, for the period subsequent to June 2023.
Further, the company’s generation petition for the remaining life of generation plants and investment plan and performance KPIs for the Transmission and Distribution segment for the next control period are in advanced stages of finalization by NEPRA which will be followed with tariff determinations for transmission, distribution and supply segments. Therefore, in the absence of approved tariff determinations, the financial statements for the quarter ending 30 September 2023 cannot be finalized.
The statement highlighted that the company has already apprised both of its apex regulators, that is, NEPRA and the Securities and Exchange Commission of Pakistan (SECP) on the subject matter.
“Being a responsible corporate citizen, the Company has no intention, whatsoever, to frustrate or breach any applicable law or regulatory framework and shall make all the efforts to comply with the requirements in the best possible manner, within its control. Further, the Company remains engaged with NEPRA for the earliest determination,” it added.
