The National Electric Power Regulatory Authority (NEPRA) today concluded its hearing on annual claims between FY17 and FY23 of unrecoverable dues against chronic defaulters filed by K-Electric, according to a statement by the distributor.
Pertinent to note that KE is allowed to claim these costs in the Multi-Year Tariff awarded to the utility, which is independent of the rates of electricity charged to customers in monthly bills under the uniform tariff policy.
The Rs. 68 billion amount discussed in the hearing has accumulated over a 7-year period which is critical to the company’s continued financial sustainability. These amounts have been unrecoverable despite best efforts against defaulters including multiple disconnections, engagement with specialized recovery agencies, and area-specific initiatives, etc.
The submissions to NEPRA have also undergone strict internal scrutiny as well as external audits by well-accredited and renowned audit firms as required by the NEPRA Authority.
Speaking on the occasion, Spokesperson K-Electric stated, “Unlike XWDISCOs, as a private utility KE has no contribution to the national circular debt, a fact that has been recognized by the World Bank and renowned global institutions. Disallowing legitimate claims will therefore directly impact KE’s cashflows, affecting our capacity to fulfill plans to drive infrastructural upgrades for enhanced power supply to Karachi.”
KE continues to actively engage with the regulator on this matter, the statement added.
Follow ProPakistani on Google News & scroll through your favourite content faster!
Support independent journalism
If you want to join us in our mission to share independent, global journalism to the world, we’d love to have you on our side. If you can, please support us on a monthly basis. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.
