ISLAMABAD:- The National Electric Power Regulatory Authority (Nepra) has decided to hold a public hearing on the matter on November 21, 2024 in Islamabad on the issue of K-Electric’s write off claim of Rs68 billion for last six financial years.
This issue is one of the key agenda items of KE and Saudi Arabia’s Aljomaih Group, whose Managing Director of Investments Abdulaziz Hamad Jomaih came Pakistan last week. He is a member of a high level delegation of company heads who are intested to invest in Pakistan.
The Power distribution company was allowed to claim write off for the control period of Multi-Year Tariff for FY 2016-17 to FY 2022-23.
The NEPRA has raised the following issues for the public hearing:
The Company has to respond whether it can claim write off for the period prior to FY 2016-17?. The Karachi-Electric was allowed to go head to deduct provision for doubtful debt from the profits in some years while calculating claw back, resulting in lower amount of claw back.
The NEPRA has raised question, can KE claim the same doubtful debt as write off again?. The electricity company was allowed a varying margin of law and order during the period with 5.2% in base case to cover losses of kunda connections.
The NEPRA authority has raised questions whether the Karachi-Electric claim related to non-recovery of bills issued against hook connections despite that they were disallowed before the period. The KE was needed to mobilize all efforts for recovery of bills to make it write off.
READ MORE: Height of mockery: PM Sharif going to announce relief in power rates in winter
The data shows that the KE has not done any legal proceeding against the defaulters less than Rs.10 million. Is it justified on legal ground? The Company as added taxes and duties of defaulting consumers in write off amount which is not jurisdiction of NEPRA.
The NEPRA questions wether the K-Electric needed to follow the provision of consumer service manual in connection, disconnection and re-connection/recoveries related to write off cases?. The initial findings of the NEPRA, the KE did not follow the rules of consumer service manual in this regards.
The NEPRA will determine the duration of recoveries and write off as the KE has added the amount in recoveries and right off which was billed few months old.
It will also look into the matter whether K-Electric needed to provide CNIC no. of the consumers who have defaulted and being claimed in the write off. It will also determine the claim of K-Electric should be allowed to write off for those whose connections were reconnected without outstanding bills.
Whether, the KE can claims non recovered bills which are for supply of electricity for more than two months. According to the rules, the KE is required to disconnect the electricity connections after defaulting of two months. It is also required to remove the equipment after 3 months of defaulting.
The KE did not get approval of the terms of reference of write off for NEPRA. The NEPRA did not approve the consumers will pay the amount or it will get from the amount of subsidy.
