ISLAMABAD: The Power Division and K-Electric (KE) are at odds over the payment of Tariff Differential Subsidy (TDS), with the utility insisting that subsidies be released on the basis of original tariff determinations, while the Power Division maintains that payments must follow NEPRA’s revised determinations, sources told Business Recorder.
The dispute has intensified through a series of letters exchanged between the two sides, each citing differing legal interpretations and court references. KE argues that interim stay orders issued by the Sindh High Court (SHC) bar the enforcement of NEPRA’s revised tariff determinations, whereas the Power Division contends that revised determinations should form the basis of TDS payments.
In a recent letter, KE Chief Executive Officer Moonis Alvi informed the Secretary Power that the utility’s legal counsel, Dr Farogh Naseem, believes the Power Division’s position could expose respondents to contempt proceedings in pending constitutional petitions before the SHC. KE reiterated that interim court orders must be interpreted in the context of the injunction applications and that no action—direct or indirect—can be taken to enforce tariffs currently under judicial restraint.
KE maintained that by withholding provisional TDS claims based on original tariff determinations, the Ministry of Energy is effectively enforcing the revised tariffs, which it is legally prohibited from doing. The utility also argued that even the agent bank, Habib Bank Limited, is bound by the SHC’s ad-interim orders and cannot process payments based on revised tariffs.
Citing relevant SHC judgments and clauses of the Tariff Differential Subsidy Agreement, KE asserted that provisional claims must be filed using the tariff preceding the one under challenge. It further contended that the preparation and revision of TDS balance reports fall solely within KE’s domain and that any unilateral revisions by the Ministry are legally void.
KE has urged the Power Division to immediately process and release provisional TDS payments based on original tariff determinations, while reserving its legal rights in the event of continued non-compliance.
Story by Mushtaq Ghumman
