NEPRA Holds Public Hearing on K-Electric’s Rs 68 Billion Write-Off Claims

The National Electric Power Regulatory Authority (NEPRA) concluded a public hearing on Tuesday regarding K-Electric’s claims of unrecoverable dues amounting to Rs 68 billion for the fiscal years 2017 to 2023.

The hearing focused on annual claims filed by the utility against chronic defaulters, with these costs being part of the Multi-Year Tariff (MYT) framework approved for K-Electric.

K-Electric has been attempting to recover the said amount over a span of seven years, despite employing various methods, including disconnections, collaboration with recovery agencies, and area-specific recovery initiatives.

Despite these efforts, the dues have remained unrecoverable, which K-Electric argues is critical to its financial sustainability and ability to upgrade infrastructure. A spokesperson for K-Electric emphasized that, unlike public-sector electricity distribution companies (XWDISCOs), K-Electric does not contribute to the national circular debt, a position acknowledged by global institutions such as the World Bank.

The spokesperson further stressed that disallowing the claims would severely impact K-Electric’s cash flows, hindering its plans for infrastructure improvements and enhanced power supply to Karachi.

K-Electric’s claims have undergone internal scrutiny and external audits by well-reputed audit firms, as required by NEPRA. The company continues to engage with the regulator on this matter, which is vital for the future of Karachi’s power supply.