NEPRA approves partial write-off claims for KE

KARACHI: The National Electric Power Regulatory Authority (NEPRA) has proceeded with its decision on the write-off petition of K-Electric (KE), letting a partial claim of PKR 50 billion against PKR 76 billion request of the company.

The K-Electric Write-Off claims relate to the Multi-Year Tariff (MYT) control period spanning FY17 – FY23.

According to K-Electric (KE) CEO Moonis Alvi, “With this, the majority of the pending items from the earlier control period will be closed. KE looks forward to the MYT for the control period spanning FY24 to FY30, committed to meeting its serviced territory’s energy needs.”

The K-Electric Write-Off claims follow public hearings and thorough considerations, allowing stakeholders to raise concerns addressed by KE management.

NEPRA conducted thorough internal evaluations and external validations of KE’s submissions through accredited auditing firms to ensure adherence to the MYT framework.

Chief Financial Officer (CFO) of KE, Muhammad Aamir Ghaziani, emphasised that these costs were part of the Multi-Year Tariff awarded for 2017-2023, accepted after severe benchmarks, audits, and regulatory conditions.

Recent hearings have scrutinized K-Electric Write-Off claims, including an additional PKR 8.1 billion request.

NEPRA has raised concerns over audit transparency and the potential for future claims. Consumers have also voiced opposition, fearing increased financial burdens on electricity bills.

KE maintains that these write-offs are essential for financial sustainability, arguing that they pertain to legacy liabilities rather than current outstanding amounts.

About K-Electric:

K-Electric (KE) is a publicly traded company that was originally established in Pakistan in 1913 under the name KESC. Following its privatisation in 2005, KE has become the sole vertically integrated power utility in the country, providing electricity to Karachi and its surrounding areas.

The majority ownership of the company, comprising 66.4% of its shares, is held by KES Power, a consortium that includes Al-Jomaih Power Limited (Saudi Arabia), the National Industries Group (Kuwait), and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan retains a 24.36% stake in KE, while the remaining shares are available for public trading.