Karachi Electric (KE) has petitioned the Power Division to release its pending claims of Rs 170 billion, citing the company’s financial difficulties.
In a letter to concerned Ministers, KE stated that on July 26, 2023, it requested the Power Division to process the release of pending claims, a notice of NEPRA-determined Schedule of Tariffs (SoTs), and verification of KE-filed Tariff Differential Claims (TDC).
According to the corporation, the Power Division has yet to notify NEPRA’s determinations of March 10, 2021, and December 2019 in the matter of quarterly variations for the period from July 2016 to March 2020, resulting in a TDC of Rs 92.6 billion.
The electricity utility further maintains that claims of Rs 66,3 billion vetted and certified by the relevant forums are pending.
Furthermore, KE has filed claims for relief supplied to zero-rated industrial consumers, Industrial assistance package 2 and 3 claims, and agricultural Tube-well subsidy claims totaling Ra 10.9 billion, all of which are requiring verification.
The electricity utility has also claimed that, according to SRO 1245 (I) 2007 of December 19, 2007, as revised from time to time, claims must be validated within five days; however, these have yet to be verified.
KE contends that delays in the pending matter have resulted in a significant accumulation of TDC balance, straining the already stretched position of the Company’s working capital and impacting KE’s ability to make payments for power purchases. The execution of planned investment projects is also critical as they help in bridging the demand-supply gap.
