ISLAMABAD: Prime Minister Shehbaz Sharif has instructed the Power Division to formulate a comprehensive solution for resolving the longstanding receivables and payments between K-Electric (KE) and various government entities and departments. This directive came during a recent meeting addressing multiple power sector issues, sources told Business Recorder.
The Power Division will work closely with the Cabinet Division and NEPRA to expedite the settlement of KE’s tariff claims. NEPRA has scheduled hearing dates for KE’s tariffs.
The Prime Minister also ordered the Securities and Exchange Commission (SECP) to review the legality of KE’s shareholding matters and report the findings to the Special Investment Facilitation Council (SIFC). Additionally, it was decided to conduct competitive bidding for Category-III wind Letter of Interest (LoI) holders to procure 300 MW for KE.
The meeting was informed that draft RFP documents were prepared by the Private Power Infrastructure Board (PPIB) and sent to KE on March 15, 2024. The PPIB Board is expected to approve the RFP/EPA by the end of June 2024, with NEPRA’s approval anticipated by the end of August 2024.
Chairman NEPRA confirmed that the evaluation of KE’s write-off claims is ongoing and assured that the tariff determination process for the period post-June 30, 2023, would be expedited. KE’s CEO highlighted that the utility’s Multi-Year Tariff (MYT) expired on June 30, 2023, and new tariff petitions have been filed with NEPRA.
Secretary Power, Rashid Langrial, presented KE’s Indicative Generation Plan (IGP) which includes several Thar Coal-based projects and conversions, as directed by the Prime Minister’s Office. Additionally, changes to the Government of Pakistan’s representation on KE’s Board of Directors were discussed, with mutual agreement to update the board members.
The following decisions were agreed upon:
NEPRA to resolve KE’s tariff issues, including write-off claims post-June 2023.
Approval of the conversion of JPCL Unit-I to 100% Thar Coal and its power off-take by KE.
KE to support the replacement of Government of Pakistan board members on KE’s Board of Directors.
