KARACHI: The National Electric Power Regulatory Authority (Nepra) has wrapped up its hearing on KE’s petition seeking approval to write off Rs8.131 billion in unrecoverable dues accumulated between fiscal year 2016-17 and 2022-23.
The request, centred on non-recoverable receivables during the multi-year tariff control period, could have far-reaching implications for the country’s broader energy sector reforms and privatisation drive.
Former prime minister Shahid Khaqan Abbasi, speaking as the former head of the government’s Energy Taskforce, threw his weight behind the write-off request. He emphasised that expecting full recovery of dues in a metropolis like Karachi -- given its complex socio-economic fabric -- is impractical. Abbasi argued that financial adjustments such as these are essential to ensure KE’s financial sustainability and are closely tied to investor confidence in the utility sector, particularly as the government considers the privatisation of other state-owned distribution companies (Discos).
CEO of KE Moonis Alvi defended the company’s position during the hearing, pointing to the audit conducted by AF Ferguson & Co -- a member of the PwC network -- as evidence of the legitimacy and transparency of the claim. Alvi asserted that the firm’s global reputation and adherence to international audit standards reinforced the credibility of the petition.
A partner from AF Ferguson & Co present at the hearing echoed Alvi’s remarks, confirming that the audit process followed rigorous global protocols and was independently executed to ensure objectivity and compliance with international standards.
Officials from Nepra clarified that the amount in question stemmed from the regulator’s own determinations. “It is KE’s right to file for such claims, and if found prudent, the Authority will decide accordingly,” a Nepra representative stated, signalling that the claim would be evaluated on merit.
The hearing also brought to light a common misconception regarding unrecovered dues. A stakeholder noted that while other Discos also suffer from recovery shortfalls, these losses are typically absorbed into circular debt and eventually passed on to consumers via surcharges implemented by Power Holding Limited (PHL). KE, which operates under a different tariff mechanism, does not receive similar treatment.Multiple stakeholders urged Nepra to deliver its verdict without further delay, emphasising the importance of regulatory clarity in attracting and retaining investors.
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