KARACHI: K‐Electric (KEL) has obtained stay order against NEPRA’s decision of July 5 from the Sindh High Court (SHC), says a notice of KE at Pakistan Stock Exchange (PSX) here on Friday.
To recall, NEPRA did not allow much increase to K‐Electric’s tariff in its reconsideration request, which likely led the company to pursue the matter in local courts.
The SHC issued an ad interim order directing NEPRA, Ministry of Energy and the Government of Pakistan not to take any adverse actions without the due process of law. This stay order will further delay the implementation of the Multi-year-Tariff (MYT) for KEL.
Owing to the MYT, the takeover of K-Electric (KE) by Shanghai Electric has apparently hit a snag following the National Electric Power Regulatory Authority’s (NEPRA) decision of a reduction of Rs 2.19 in the power company’s multiyear tariff (MYT) from the existing rates, sources said.
Well-informed sources told Pakistan Today that KE’s takeover deal is in doldrums after NEPRA’s decision which pertains to MYT of the power company (KE). They said that though the Chinese were pushing for a higher tariff, NEPRA, however, approved Rs2.19 cut in MYT of KE from the existing rates. And, reduction in the MYT has apparently been causing the delay in the takeover of KE, said sources.
“KE’s takeover by Shanghai Electric from Abraaj Group might take more time as certain changes will be made in the agreement, following NEPRA’s decision of reduction in MYT of KE against the demand of the Chinese,” said sources.
