ISLAMABAD : K-Electric has increased its write off claims to Rs 76.033 billion in hope of getting approval of at least Rs 50 billion from the National Electric Power Regulatory Authority (NEPRA) after intervention from the Energy Task Force, which along with SIFC is now dealing with the KE’s pending issues , sources told Newzshewz.
According to NEPRA, in continuation to the hearing of December 10, 2024, all stakeholders, interested/ affected person and the general public have been informed that KE has filed additional write of claims of Rs 8.131 billion pertaining to the billing of MYT 2017-2023 in additional to the already requested an amount of Rs 67.902 billion.
The Regulator has decided to hold a hearing in the matter of additional claims of Rs 8.131 billion on April 17, 2025.
Earlier, Chairman of the KE Board, Mark Gerard Skelton in a email had informed the Board members that since the company might not be able to comply with the requirement of sending meeting notices and working papers seven days in advance had shared a brief explanation of the matters that needed to be discussed at short notice.
According to hi, with reference to the write-off claims related to the MYT 2017-2023 filed by KE, he stated that discussions were held with the Task Force on Energy, the Power Division, and Nepra. During those discussions, it was highlighted that claims related to the billing period prior to FY 2017 may not be permitted.
However, since claims for previous periods may be disallowed, it was agreed that KE could file additional claims related to the billing for FY 2017 to FY 2023 to ensure the approval of claims totalling Rs 50 billion out of the Rs 68 billion initially filed. The additional claims should also meet the criteria outlined in the tariff determination.
The claim submission process includes a review by the internal auditors, followed by final verification by the company’s statutory auditors. Internal auditors have verified claims of Rs 8.9 billion. Currently, the claims are being verified by statutory auditors, and an amount of Rs 6 billion has already been verified. It is expected that their verification exercise will be completed soon. The final claim amount, as verified by external auditors, will be presented to the BAC and the BoD for approval prior to submission to Nepra.
“Since we need to submit the claim to Nepra for processing as soon as possible, we will schedule BAC and BoD meetings on very short notice once we have visibility on the actual date when auditors will be able to conclude their verification exercise,” the Chairman of KE Board wrote to Board members.
On December 10, 2024, NEPRA had reserved its decision on the write-off claims of Rs 68 billion filed by the KE for the period from 2017 to 2023. However, later developments had compelled the Regulator to put its decision on ice and reconsider the write-off claims of power utility company. Ends
