ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) conducted a heated public hearing on Thursday regarding K-Electric’s (KE) petition for an additional Rs8.13 billion in write-offs, part of a broader Rs76 billion claim for recovery-related losses spanning from 2017 to 2023.
Chairing the session, The News reported, Nepra’s chairman led discussions probing KE’s justification for the write-offs and the transparency of its audit practices.
KE CEO Moonis Alvi emphasised the company’s compliance with “all regulatory requirements”, stating that the new request adds Rs8 billion to the earlier Rs67 billion already submitted.
He, during the hearing, also defended the legitimacy of the claims, emphasising that the audit was conducted by a “globally recognised firm known for its independence and adherence to international standards”, a statement from the power supply company added.
However, Nepra expressed concerns over the audit, which KE claims was conducted what the utility called “the top-rated firm in Pakistan.”
Questions were raised about the audit’s independence, with officials from KE acknowledging the possibility of further claims.
“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, emphasising 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.
