KE write-offs reach Rs76bn, another Rs8bn sought

ISLAMABAD: K-Electric’s write-off claims have ballooned to a staggering Rs76 billion, as the power utility has once again asked the National Electric Power Regulatory Authority (Nepra) to approve an additional Rs8.131 billion in losses -- potentially burdening either the federal government or already-strained electricity consumers.

In a fresh petition, K-Electric (KE) requested to add Rs8.131 billion to its earlier unrecovered billing claims of Rs67.902 billion for the Multi-Year Tariff (MYT) period 2017-2023, according to a notice issued by Nepra. previously conducted a public hearing in December 2024 on KE’s Rs67.9 billion petition, where vast majority of participating consumers strongly opposed the utility’s bid to shift the losses onto them or the state.

Now, with the additional claim, Nepra has scheduled another public hearing for April 17, 2025.

Despite billions in taxpayer-funded subsidies, KE continues to struggle with recoveries. According to Nepra, of the Rs68 billion claimed between FY17 and FY23, the utility launched legal proceedings only in cases where defaulters owed more than Rs10 million. However, even those efforts have seen limited success—Rs250 million remain entangled in failed court battles.

Meanwhile, no legal action has been taken against defaulters owing less than Rs10 million—a group that collectively accounts for a whopping Rs41.65 billion. Nepra also noted that Rs24.36 billion worth of KE’s write-off claims date back to before July 1, 2016.

Since 2006, KE consumers have received Rs804 billion in federal tariff differential subsidies (TDS) to bridge the gap between the high cost of KE’s power generation and the uniform national tariff. The subsidy is meant to ensure parity between KE consumers and those served by other power distribution companies (Discos). But despite the massive public support, KE continues to ask for more.