Nepra grills K-Electric over Rs8.1bn write-off claim

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday held a charged public hearing on K-Electric’s (KE) petition seeking an additional Rs8.13 billion in write-offs — part of a broader Rs76 billion claim for recovery-related losses from 2017 to 2023.

Chaired by Nepra chairman and attended by all members, the hearing scrutinised KE’s rationale for the write-offs, its audit practices and whether future claims were in the pipeline.

“We’ve complied with all regulatory requirements and now seek Nepra’s guidance,” said KE CEO Moonis Alvi, noting that the latest request adds Rs8 billion to the earlier Rs67 billion already submitted.

Nepra raised questions about the transparency of KE’s audit, conducted by what the utility called “the top-rated firm in Pakistan.” Nepra chairman asked whether the audit was fully independent and free of influence. “There may still be additional claims,” KE officials admitted, prompting further concern from the authority.

Nepra Member Rafiq Sheikh questioned whether customers had been double-counted in the categorisation of active, inactive, and scheme consumers, emphasizing that “audit transparency is the first assurance needed in such massive write-offs.”

Rehan Javed from the Korangi Association of Trade and Industry (KATI) raised concerns about Karachi’s consumers bearing the Power Holding Limited (PHL) surcharge burden despite KE’s non-involvement in the national circular debt. He warned of potential protests if fairness concerns remain unaddressed.

Nepra had earlier invited stakeholders for input and said it would evaluate audit findings and issue a decision in due course. The Rs76 billion claim is part of a larger Rs122 billion in total unrecovered dues KE seeks to rationalise. Nepra concluded the hearing stating that KE’s claims would undergo detailed scrutiny, and a formal determination would be issued after complete evaluation.