KE to hold AGM after Nepra’s approval of MYT

KARACHI: K-Electric has informed the shareholders that following the approval of the multi-year tariff (MYT) by the National Electric Power Regulatory Authority (Nepra), the company will soon hold the annual general meeting for the year ended June 30, 2017.

The company has been informing PSX shareholders on regular basis that K-Electric MYT expired on June 30, 2016 and tariff for the period starting July 1, 2016 has yet not been finalised and notified, a company letter said to the Pakistan Stock Exchange on Wednesday.

The company also informed that a reconsideration application has been filed with Nepra by the Ministry of Energy to review the MYT, and a decision was yet to be announced in this regard.

Since the company does not have a valid tariff for the year starting July 1, 2016, it was unable to prepare financial statements on the basis of estimation, the letter informed.

It also said that the Securities and Exchange Commission of Pakistan (SECP) had instructed the company to apply for direction to hold AGM for FY17 at a time when the company was reasonably certain of a definite date; SECP recently issued a direction to hold the AGM latest by July 25, 2018.

“All efforts are being made to comply with SECP direction to hold AGM within the specified time, however, that preparation of accurate financial statements for the year ended June 30, 2017 is contingent upon Nepra’s decision on reconsideration request of Ministry of Energy,” the KE letter said.

The company added that as the accuracy of the contents of the financial statements to be produced by the company and presented at the AGM for approval of shareholders was dependent entirely on the MYT, therefore it was beyond the control of the company and its management to prepare the financial statements without notification of Nepra decision. “We assure our valued shareholders that as soon as the final MYT is notified, annual general meeting will be held without any delay after completion of stipulated regulatory requirements,” the letter said.

K-Electric earned a profit of Rs32.758 billion during fiscal 2015-16 compared with Rs28.325 billion of the preceding year. The company during 2015-16 sold around 12,865 million kilo watts, up from 12,294 million kilo watts of the corresponding year.