ISLAMABAD: The new management of K-Electric has sought adjustment claims of Rs 58 billion for Multi Year Tariff (MYT) period from FY 2017 to FY 2023.
The new top brass of the power utility company had already indicated that it would ensure financial rights of the company after departure of former CEO Syed Moonis Abdullah Alvi.
The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on April 22, 2026, to examine adjustment claims submitted by K-Electric Limited (KE) amounting to over Rs58 billion.
It will be test of Power Division which opposed many such proposals during the term of Mr. Alvi.
According to a notice issued by the regulator, KE has sought an End of Term Adjustment (EoTA) of Rs43.6 billion under its MYT determination. The major components include Rs23.4 billion on account of working capital costs, Rs11.05 billion due to exchange rate impact on return on equity, and Rs10.4 billion linked to adjustments in working capital requirements. However, an amount of Rs1.3 billion has been deducted under the impact of investments not incurred.
In addition to the EoTA, KE has also requested Rs15.3 billion under tax pass-through and other adjustments. This includes Rs7.5 billion for taxes paid in 2023, Rs3 billion as additional tax liability for 2022, and Rs4.1 billion related to minimum tax for the period 2018–2021. Smaller claims include Rs461 million under WWF/WPPF pass-through and Rs261 million in pending power purchase adjustments.
The power utility has further requested that any additional costs arising from pending assessments or adjudications during the MYT control period be allowed subsequently, subject to verification.
NEPRA noted that the requested adjustments would have a financial impact, prompting the authority to initiate a hearing to assess their justification. Key questions to be examined include whether the claims fall within the permissible scope of end-of-term adjustments, the validity of investment-related claims, and the legitimacy of tax and other pass-through amounts.
The hearing will be held at NEPRA Tower in Islamabad, with an option for stakeholders to participate virtually. The regulator has invited all interested and affected parties to submit their comments and objections as per the applicable legal framework.
The outcome of the proceedings is expected to have implications for KE’s financial position and potentially for consumer tariffs, depending on the regulator’s final determination. Ends
