The National Electric Power Regulatory Authority (Nepra) held an intense public hearing on Thursday concerning K-Electric’s (KE) request for an additional Rs8.13 billion in write-offs, a component of a larger Rs76 billion claim for recovery-related losses incurred between 2017 and 2023.
Presiding over the session, as reported by The News, Nepra’s chairman spearheaded discussions, rigorously questioning KE’s justification for the write-offs and the clarity of its auditing procedures.
KE CEO Moonis Alvi underscored the company’s adherence to “all regulatory requirements,” stating that the new request adds Rs8 billion to the previously submitted Rs67 billion.
During the hearing, he also defended the legitimacy of the claims, stressing that the audit was conducted by a “globally recognised firm known for its independence and adherence to international standards,” according to a statement released by the power supply company.
However, Nepra voiced concerns regarding the audit, which KE asserted was performed by what the utility termed “the top-rated firm in Pakistan.”
Questions arose concerning the audit’s impartiality, with officials from KE acknowledging the possibility of further claims emerging.
“There may still be additional claims,” KE officials admitted, prompting further apprehension from the regulatory body.
Nepra Member Rafiq Sheikh inquired whether customers had been counted multiple times in the categorisation of active, inactive, and scheme consumers, emphasising that “audit transparency is the fundamental assurance required for such substantial write-offs.”
Rehan Javed from the Korangi Association of Trade and Industry (KATI) expressed worries about Karachi’s consumers shouldering the Power Holding Limited (PHL) surcharge burden despite KE’s lack of involvement in the national circular debt. He cautioned about potential protests if issues of fairness are not adequately addressed.
Nepra had previously invited input from stakeholders and stated its intention to evaluate the audit findings and issue a decision in due course.
The Rs76 billion claim is part of a more extensive Rs122 billion in total unrecovered dues that KE seeks to rationalise.
Nepra concluded the hearing by stating that KE’s claims would undergo thorough examination, and a formal determination would be issued following a complete evaluation.
