ISLAMABAD: K-Electric has renewed its efforts to secure the support of Minister for Power, Sardar Awais Ahmad Khan Leghari for an upward revision of its tariff after the National Appellate Tribunal rejected its appeal against the revised Multi-Year Tariff (MYT), a dispute that is now before the Sindh High Court (SHC), well-informed sources told Business Recorder.
In this regard, KE Chief Executive Officer Syed Muhammad Taha held a meeting with the Power Minister a couple of days ago, during which he shared the company’s current financial position and sought the government’s support for what the utility describes as a win-win resolution of its MYT for FY2024-30, the sources added.
According to sources, Taha proposed the constitution of a working group to deliberate on key considerations and develop a fair and sustainable resolution of the company’s tariff dispute.
requirements, while lower tariffs reduce the subsidy burden.
He maintained that circular debt largely accumulated because of weak recoveries and high losses among distribution companies (Discos), with the resulting liabilities eventually being capitalised and recovered from consumers after several years.
KE consumers, he said, were also paying Rs3.23 per unit towards this account, despite the company’s own financial and operational circumstances.
Chishty further pointed to the tariff petitions submitted by Discos for calendar year 2027, in which the companies have sought Prior Year Adjustments (PYAs) worth trillions of rupees under different heads.
He questioned what he described as differential regulatory treatment, arguing that KE appeared to be facing the treatment of a stepchild while other distribution companies were seeking approval to pass on their costs and inefficiencies to consumers.
The KE chairman also said the company had addressed its pension-related liabilities effectively and reduced costs across the board, whereas other Discos were seeking NEPRA’s approval to transfer their inefficiencies to electricity consumers.
However, Chishty acknowledged that KE had also failed to undertake certain necessary measures over the past seven to eight years, suggesting that the company’s own shortcomings could not be ignored in resolving the dispute.
“I agree 100 per cent with the government’s viewpoint that KE has not fulfilled its own responsibilities. However, my viewpoint is that the past is over, now we have to move forward,” he said.
His remarks suggest that KE’s management is seeking a way forward that recognises the government’s concerns about the utility’s past performance while revisiting the financial assumptions underpinning the revised MYT.
Story by Mushtaq Ghumman
