ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has concluded its hearing on K-Electric’s annual claims for unrecoverable dues from chronic defaulters, ARY News reported on Tuesday.
During the proceedings, consumers voiced numerous concerns regarding K-Electric’s write-off claims for the period between FY17 and FY23, citing significant challenges faced by Karachi’s residents and businesses.
K-Electric stated that under the Multi-Year Tariff framework, it is authorized to claim these costs, which are independent of the electricity rates charged to consumers under the uniform tariff policy.
The utility elaborated that the Rs68 billion under discussion represents a seven-year accumulation, crucial for the company’s financial stability. “These amounts remain unrecoverable despite extensive recovery efforts, including disconnections, specialized recovery agencies, and area-specific initiatives,” the company said.
K-Electric emphasized that all submissions to NEPRA had undergone rigorous internal scrutiny and external audits by reputed firms, as required by NEPRA regulations.
Speaking at the hearing, a K-Electric spokesperson highlighted that, unlike DISCOs, the private utility contributes nothing to the national circular debt, a fact acknowledged by the World Bank and other global institutions.
The spokesperson warned that disallowing legitimate claims would negatively impact K-Electric’s cash flow, hindering its ability to invest in infrastructure upgrades for improved power supply in Karachi.
The company assured continued engagement with the regulator on the issue.
Consumers, however, expressed frustration over escalating electricity costs, which they claim are making it increasingly difficult to operate businesses in Karachi.
“Hundreds of factories have already shut down, and many others are nearing closure due to unaffordable power rates,” one consumer lamented.
Another consumer rejected the additional burden of write-off claims, asserting that Karachi’s electricity users are already being overburdened with surcharges to reduce circular debt.
