NEPRA wrapped up its hearing on K-Electric’s extra claims of unrecoverable dues against chronic defaulters between FY17 and FY23 on Wednesday.
It is important to remember that under the uniform tariff policy, KE is permitted to recover these expenses in the Multi-Year Tariff granted to the utility, regardless of the monthly electricity rates that customers pay on their bills.
After meeting the eligibility requirements established by NEPRA since the hearing in December, the additional Rs. 8.1 billion that was addressed in the hearing has now been requested. This sum had accrued over a seven-year period. For the business to remain financially viable, these claims must be approved.
Despite KE’s best efforts to combat defaulters, which included several disconnections, collaboration with specialized recovery agencies, and area-specific programs, among other measures, these sums have proven unrecoverable. As mandated by the NEPRA Authority, the submissions to NEPRA have also been subjected to rigorous internal review and external audits by reputable and certified audit companies.
Speaking at the event, K-Electric spokesperson said, “Reputable international organizations have acknowledged that KE, as a private company, does not contribute to circular debt. By granting valid claims, KE will be able to improve its cash flows, expedite planned infrastructure improvements, and provide its consumers with a more dependable electricity supply.
On this issue, KE is still actively interacting with the regulator.
