ISLAMABAD: K-Electric’s request to write off Rs68 billion in ‘unrecoverable dues’ from defaulters has met fierce opposition from stakeholders, who argue it would unfairly burden taxpayers and honest consumers through budgetary subsidies and tariff adjustments.
The Karachi-based utility submitted the claim for losses incurred over seven years (FY2017-2023) under a 2018 tariff determination that permitted a 1.69% provision for recovery shortfalls. KE’s CEO, Moonis Alvi, and CFO, Amir Ghaziani, defended the plea as a rightful claim, suggesting the amount be absorbed into consumer tariffs or subsidized by the federal government.
During a public hearing chaired by NEPRA Chairman Waseem Mukhtar, most interveners rejected the request, criticizing it as unjust to paying consumers. NEPRA members questioned KE’s failure to pursue legal action against major defaulters and challenged the legitimacy of the claim.
The utility argued it had made significant efforts to recover dues, including disconnections and engaging specialized recovery agencies. Despite these measures, KE claimed Rs68bn remained unrecoverable, a fraction of its total revenue losses of Rs119bn during the tariff control period.
Representatives of Jamaat-e-Islami and the Karachi Chamber of Commerce and Industry (KCCI) denounced the claim, describing it as “fake” and accusing KE of passing its inefficiencies onto consumers. Critics also raised concerns over the company’s auditing practices and pointed to unresolved refund obligations of Rs54bn owed to users.
NEPRA has yet to decide on the controversial claim, which continues to draw significant public scrutiny.
