Nepra clears Rs50bn KE write-off, approves Rs2.99 per unit fuel relief

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a Rs50.01 billion write-off for K-Electric (KE) as ‘full and final settlement’ of uncollected billing claims related to its multi-year tariff (MYT) from 2017 to 2023. This approved amount is over two-thirds of KE’s original claim of Rs76.03 billion.

While approving the amount, Nepra noted that independent auditors confirmed KE had exhausted all possible recovery efforts. However, the regulator directed KE to continue pursuing recoveries and to pass any amount recovered from these write-offs directly to consumers through future quarterly tariff adjustments. Additionally, KE must submit annual certificates from its auditors disclosing any such recoveries.

Meanwhile, the Karachi-based utility said in a statement that KE Chief Executive Officer (CEO) Moonis Alvi welcomed the decision, stating, “With this decision, majority of items pending to the previous control period have come to a close. KE looks forward to the MYT for the control period spanning FY24 to FY30, committed to meeting its serviced territory’s energy needs.”

The decision was issued after public hearings and detailed deliberations, where stakeholders raised concerns that were addressed by KE management. Nepra reviewed the claims through internal scrutiny and third-party validation by accredited audit firms.

“These costs were part of the Multi-Year Tariff awarded to the utility for the period 2017–2023, and have been approved after stringent benchmarks, audits and fulfilment of conditions laid down by Nepra in its tariff determination,” it said.