Author: Admin

K-Electric’s Rs68bn Write-Off Plea Faces Strong Resistance

Admin
circular-debt-K-electric-ceo

ISLAMABAD: K-Electric’s request to write off Rs68 billion in ‘unrecoverable dues’ from defaulters has met fierce opposition from stakeholders, who argue it would unfairly burden taxpayers and honest consumers through budgetary subsidies and tariff adjustments. The Karachi-based utility submitted the claim for losses incurred over seven years (FY2017-2023) under a 2018 tariff determination that permitted a 1.69% provision for recovery shortfalls. KE’s CEO, Moonis Alvi, and CFO, Amir Ghaziani, defended the plea as a rightful claim, suggesting the amount be absorbed into consumer tariffs or subsidized by the federal government.…

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Cabinet Approves Revised Agreements with Eight IPPs to Slash Power Costs

Admin
Power-sector

ISLAMABAD: The federal cabinet, led by Prime Minister Shehbaz Sharif, has approved revised settlement agreements with eight independent power producers (IPPs) operating on bagasse. This move is projected to save approximately Rs240 billion for the national exchequer and reduce electricity tariffs. The decision, based on recommendations from the Ministry of Energy’s power division, involves tariff adjustments for power plants, including DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Industries, Thal Industries, and Chinar Industries. The Central Power Purchasing Agency will now seek approval from the National…

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Power Companies’ Inefficiencies Cost Exchequer Rs660 Billion

Admin
Power Division

ISLAMABAD: The poor performance of electricity distribution companies in the fiscal year 2023-24 led to losses exceeding Rs660 billion for the national exchequer, according to the annual performance report by the National Electric Power Regulatory Authority (NEPRA). The report highlighted systemic inefficiencies, including high transmission and distribution (T&D) losses and low recovery rates. These inefficiencies, coupled with the operational shortcomings of both private and public power plants, imposed significant financial burdens on taxpayers and consumers. T&D Losses and Circular DebtT&D losses emerged as a critical issue, with no distribution company…

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KE’s write-off claims to serve as crushing blow to Karachi’s consumers, industries

Admin
K-Electric

By Rehan Jawed Karachi is Pakistan’s economic hub, contributing 50% of the nation’s total tax revenue and producing 50% of the country’s exports. Yet, its consumers and industries bear the highest electricity costs in the country, making it increasingly difficult for them to sustain operations. Costs of Write-Off claims must not be imposed on Karachi’s consumers. If K-Electric’s financial sustainability is a priority, the federal or provincial government and NEPRA must resolve this issue without burdening Karachi’s already over paying consumers. We fail to understand why this write-off claim was…

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