ISLAMABAD: While it remains unclear who will ultimately prevail in the legal battle, both the Power Division—headed by Sardar Awais Ahmad Khan Leghari—and K-Electric (KE), the country’s first privatised power utility led by Syed Moonis Abdullah Alvi, are making strenuous efforts to justify their respective positions in the ongoing dispute over Tariff Differential Subsidy (TDS) claims, Newzshewz leant on Sunday.
In a letter dated December 8, 2025, signed by Deputy Secretary Syed Mateen Ahmed, the Power Division referred to its earlier communication of November 3, 2025, followed by KE’s letters of November 11 and 12, 2025, concerning provisional TDS invoices for the period from July 2023 to September 2025. The correspondence also covers KE’s TDS claims for October 2025, its letters dated November 14 and December 1, 2025, as well as the Ministry of Energy (Power Division)’s response of November 24, 2025 regarding the TDS balance report for October 2025.
According to the Power Division, the TDS Agreement signed on January 5, 2024 provides a mechanism for streamlining the processing and release of subsidies directed by the Federal Government for the benefit of electricity consumers. These subsidies are strictly limited to Tariff Differential Subsidies as defined under the agreement.
In this context, the Power Division stated that its letter of November 3, 2025 clearly outlines the legal and regulatory framework under which KE’s financial claim of Rs 187.93 billion for the period July 2023 to September 2025 is “unsustainable and grossly inflated.” The claim, it argued, does not reflect NEPRA’s tariff determination issued on October 20, 2025, whereby review petitions were decided and earlier findings and determinations were either reversed or modified. Nor does the claim correspond to any TDS directed by the Federal Government, making it contrary to the terms of the TDS Agreement.
Responding to this, the Power Division said KE, through its letter of November 11, 2025, merely asserted that the matter had been rendered infructuous following the filing of Constitutional Petitions Nos 5384–5387 of 2025, in which the Sindh High Court issued an order on November 4, 2025 stating that “no coercive action shall be taken.”
“This position is untenable,” the Power Division maintained, noting that KE’s petitions do not challenge the November 3 communication, nor do they seek any specific relief in that regard. Moreover, the court did not suspend the operation of NEPRA’s tariff determination—a relief that was expressly sought but not granted. The ad-interim order, the Division emphasised, does not direct the Federal Government to process or release any subsidy beyond what has been determined by NEPRA and approved by the government.
The Power Division further argued that KE, under the guise of Section 2.1(b) of the TDS Agreement and the ad-interim order, is attempting to establish a TDS claim of Rs 8.64 billion for October 2025. “No restraining order against the tariff exists that would fall within the scope of Section 2.1(b),” it said, adding that the phrase “no coercive action shall be taken” cannot be construed as a suspension of NEPRA’s determination.
It added that KE is effectively asking the Federal Government to mandatorily process subsidy claims based on findings and determinations that no longer exist, as NEPRA has already decided the relevant review petitions through its composite order dated October 20, 2025. Under the principle of merger, this composite order is the only operative determination, and any subsidy can only be processed on that basis.
“Any claim based on extraneous data not supported by NEPRA’s findings or for which no subsidy has been sanctioned by the Federal Government cannot be entertained,” said Syed Mateen Ahmed, an officer of IESCO currently posted in the Power Division.
The Power Division also pointed out that balance reports under Section 2.6 of the TDS Agreement have not been provided by KE since August 8, 2025. It further stated that the October 2025 balance report submitted by KE on November 14, 2025—based on its own disputed position—was found to be unsustainable and misconceived, and was responded to accordingly on November 24, 2025.
Rejecting KE’s assertion that the October balance report should be “deemed signed,” the Power Division clarified that the deeming provision under Section 2.6 applies only in cases of delay in signing a balance report. In this case, the report had already been duly signed and communicated on November 24, 2025.
In view of the foregoing, the Power Division has asked KE to fulfil its obligations under the legal, regulatory and contractual framework of the TDS Agreement, ensuring protection of consumer interests while enabling the Federal Government to provide subsidies strictly in accordance with NEPRA determinations.
Ends
