ISLAMABAD: Finance Minister Senator Muhammad Aurangzeb has convened an inter-ministerial meeting on Wednesday (Jan 29) to discuss key issues related to K-Electric (KE), following a proposal by the Special Investment Facilitation Council (SIFC), which is addressing Saudi investment-related concerns.
Key Issues on the Agenda:
Generation tariff approval.
Transmission, distribution, and supply tariff under review.
KE’s Rs 68 billion write-off claims pending NEPRA verification.
Shareholding dispute between Al-Jomaih and Asia Pak.
Mediation agreements involving KE and government entities.
The meeting will be attended by Power Minister Awais Leghari, Economic Affairs Minister Ahad Khan Cheema, SAPM on Power Muhammad Ali, and key officials from NEPRA, SECP, CPPA-G, and SIFC.
KE has been pushing for a cost-reflective and sustainable tariff to ensure financial stability and attract foreign investment. Delays in tariff approvals have hindered KE’s ability to finalize its financial statements post June 30, 2023 and execute its NEPRA-approved investment plan.
Investment Plan & Growth Projections
The Power Division has raised concerns over KE’s projected annual demand growth of 2.4%, which contrasts with the government’s 6% GDP growth target under the “Uraan” initiative. The recent gas price hike for captive consumers is expected to drive additional demand toward the national grid, affecting KE’s assumptions.
Mediation & Dispute Resolution
The meeting will also review mediation efforts between KE and government entities like NTDC, CPPA-G, SSGC, and KW&SC regarding historical receivables, payables, and markup claims. Earlier mediation sessions were held in May and August 2024, but further progress has stalled due to procedural challenges. The Power Division is now seeking ECC and Cabinet approval to extend mediation timelines.
Resolving these issues is critical for KE’s financial health, consumer protection, and aligning Karachi’s energy planning with national economic growth targets.
Story by Mushtaq Ghumman
