ISLAMABAD:* The Board of Directors of K-Electric (KE) is set to approve additional write-off claims to secure the approval of Rs 50 billion in billing adjustments for the financial years 2017 to 2023. This move aligns with an understanding reached with the Task Force on Energy, headed by Federal Minister for Power Sardar Awais Khan Leghari.
The 125th KE Board meeting, scheduled for March 18, 2025, will finalize these claims for submission to the National Electric Power Regulatory Authority (Nepra). KE Chairman Mark Gerard Skelton acknowledged the urgency of the matter, citing the need for expedited decision-making despite the standard requirement of a seven-day notice for board meetings.
Discussions with the Task Force on Energy, Power Division, and Nepra highlighted that billing claims prior to 2017 might not be permissible. Consequently, KE has adjusted its filing strategy to ensure Rs 50 billion of the Rs 68 billion originally requested meets regulatory criteria.
The approval process includes internal auditing, followed by verification by statutory auditors. To date, Rs 6 billion has been verified, with the final amount pending further review before submission to Nepra.
During a Nepra hearing on December 10, 2024, KE defended its request, arguing that its write-off claims, amounting to 3.6% of total recovery, should be accommodated within the Multi-Year Tariff (MYT) framework. KE CEO Syed Moonis Abdullah Alvi emphasized that while KE consumers already bear surcharges for circular debt, the utility has yet to receive compensation for recovery losses.
The company asserted that its claims, totaling Rs 68 billion, are in line with Nepra’s verification criteria and exclude energy theft or unbilled units. Despite achieving a peak recovery rate of 95.4% in FY2022, macroeconomic challenges and tariff hikes have impacted collection efforts. KE underscored its commitment to fair recovery practices, including disconnections, installment plans, and external recovery agencies.
With the final verification process underway, KE aims to expedite regulatory approval, ensuring financial stability while maintaining compliance with tariff regulations.
Story by Mushtaq Ghumman
