K-Electric’s receivables surge to Rs158.8bn

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KARACHI: The outstanding receivables of K-Electric (KE) have ballooned to Rs158.8 billion on account of outstanding payments from various federal and provincial public sector entities, including Karachi Water and Sewerage Board (KWSB), which owes Rs31.9 billion to KE.

In stark contrast to commonly held perception, the receivables of the power utility are nearly twice as much as its payables (Rs82.2 billion). Out of this payable amount, Rs13.7 billion is the actual principal payments owed by Sui Southern Gas Company (SSGC) against gas supply (Rs4.67 billion to be adjusted against refundable GIDC), while the remaining dues are owed by National Transmission and Distribution Company (NTDC) and other federal and provincial entities.

In response to a question about the difference in the value of outstanding payments being claimed by SSGC, a KE spokesperson clarified, “KE has not defaulted on its current payments to SSGC since 2012, and during this period, KE paid over Rs277 billion to SSGC which includes all the current running bills and payments for arrears to the tune of Rs13.55 billion.

“The current outstanding principal balance of SSGC is around Rs13.7 billion (Rs4.67 billion to be adjustable against refundable GIDC), whereas the remaining amount as claimed by SSGC appears to be grossly inflated through the inclusion of markup or interest which has been challenged in the court of law. Considering that this matter is still subjudice, it is highly inappropriate that grossly exaggerated allegations have been made against KE.

“Until the culmination of the litigation process, through a judgment on the merits, deeming this disputed amount as dues would be premature and contrary to the facts and law.”

The power utility spokesman reiterated that the financial settlements between KE and public sector entities must be treated in a fair and uniform manner and the yardstick applied on KE’s payables should also apply to KE’s receivables from provincial, federal and other public sector entities.

“K-Electric is in constant liaison with concerned stakeholders for a fair and equitable resolution of this matter. Most importantly, all stakeholders must acknowledge that KE is Pakistan’s sole vertically integrated power utility, providing power to the country’s financial and industrial hub and thus should be treated equitably, in a fair manner and all settlements whether federal or provincial should be tabled together under one umbrella,” he added.

KE, as the sole power provider to Karachi and its adjoining areas with over 20 million inhabitants, is committed to serving its customers and powering the country’s economic hub. In this regard, the power utility has invested more than $2.1 billion in infrastructure upgrades across the energy value chain over the last nine years and has exempted more than 70pc of its service area from load-shed, including 100pc exemption for industries.

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