NEPRA Wednesday concluded its hearing on the additional claims between FY17 and FY23 of unrecoverable dues against chronic defaulters filed by K-Electric.
Pertinent to note that KE is allowed to claim these costs in the Multi-Year Tariff awarded to the utility, which is independent of the rates of electricity charged to customers in monthly bills under the uniform tariff policy.
The incremental amount of Rs. 8.1 billion discussed in the hearing had accumulated over a 7-year period and are now being requested as they have met the eligibility criteria set by NEPRA since the hearing in December. The approval of these claims is critical to the company’s continued financial sustainability.
These amounts have been unrecoverable despite KE’s best efforts against defaulters including multiple disconnections, engagement with specialized recovery agencies, and area specific initiatives etc. The submissions to NEPRA have also undergone strict internal scrutiny as well as external audits by well-accredited and renowned audit firms as required by the NEPRA Authority.
Speaking on the occasion, Spokesperson K-Electric stated, “As a private utility, KE has no contribution to circular debt, a fact that has been recognized by renowned global institutions. Allowing legitimate claims will strengthen KE’s cashflows, enabling KE to accelerate planned infrastructure upgrades and deliver a more reliable power supply for its customers.”
KE continues to actively engage with the regulator on this matter.
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