ISLAMABAD : K-Electric (KE ) has sought Power Division’s support for issuance of credit note of Rs 7.43 billion for adjustment against future invoices, well informed sources told NewzShewz.
Aamir Ghaziani, Chief Financial Officer, KE, in a letter to Power Division has reference of his earlier letters having of July 01, 2024 and August 05, 2024 wherein request was made to the Ministry of Energy, Power Division (MoE) in respect of issuance of credit note for the additional payment made and future Tariff Differential Claims (TDC) releases to be made directly to KE pertaining to period post December 31. 2023.
In this regard, the power utility company has reiterated its earlier request to MoE to issue necessary instructions to CPPA-G to issue a credit note of Rs 7 .43 billion for adjustment against future invoices, arising due to additional payment to CPPA-G on account of TDC of KE for FY 2023-24 and also request that all future TDC releases pertaining to period post December 31. 2023 be made directly to KE instead of CPPA-G as per the effective Tariff Differential Subsidy (TDS) Agreement.
According to the CFO, this is critical for KE in managing its working capital requirements and to ensure liquidity and sustainability, adding that despite during this challenging time’ KE has been fu filling its obligations under the Power Purchase Agency Agreement (‘PPAA’) between KE and CPPA-G, making timely payments totaling Rs 120.59 billion directly to CPPA-G for power purchases. As a result, there is no outstanding payable to CPP-G for the period post December 31. 2023. Ends
