ISLAMABAD: The tariff differential subsidy dispute involving K-Electric (KE), the government, and state-owned enterprises (SOEs) remains unresolved, as mediation efforts continue to face hurdles. The Karachi Water and Sewerage Board (KWSB) has refused to cooperate, further delaying the resolution process.
The government had appointed a mediator to address KE’s claims for tariff differential subsidies and payables from entities such as Central Power Purchasing Agency-Guarantee (CPPA-G), National Transmission and Despatch Company (NTDC), and Sui Southern Gas Company (SSGC). However, a settlement remains elusive.
The dispute, which has unsettled foreign investors in KE, revolves around three key issues:
Outstanding receivables from KWSB owed to KE.
Government’s unpaid tariff differential subsidy to KE, including pending claims due to procedural delays.
KE’s liabilities towards NTDC/CPPA-G and SSGC for power and gas supply.
Mediation began on March 4, 2024, under Asmat Ausaf Ali, but KWSB’s non-participation has stalled progress. KE has submitted its claims, while NTDC/CPPA-G and SSGC have also filed claims against KE for outstanding dues.
To ensure a comprehensive resolution, the economic decision-making body has been requested to approve a 90-day extension for completing the mediation process. Authorities stress that the dispute should be settled as per the amended mediation agreement to prevent further delays.
Story by
Zafar Bhutta
