K-Electric payables to govt rise over 50% to Rs329 billion after tariff stay

Liabilities owed by K-Electric to government entities increased by more than 50 percent during the first half of the fiscal year, going from Rs218 billion to Rs329 billion, as disputes over tariffs and adjustments in power purchase costs remained unresolved, according to a regulatory filing.

The outstanding amount includes Rs136 billion in principal and about Rs193 billion in markup, the documents show.

A senior Power Division official linked the increase to K-Electric obtaining a court stay on its multi-year tariff. The official told The News: "The buildup began after the utility moved the court and obtained a stay on its multi-year tariff, effectively halting payments to the government. Since then, the outstanding amount has grown exponentially."

The report said the government also increased K-Electric’s grid withdrawal from 1,000 MW to 2,050 MW.

The rise in payables follows Nepra’s October 2025 reversal of its May 2025 tariff decision, which reduced K-Electric’s multi-year tariff for FY 2023–24 by Rs7.6 per unit, from Rs39.97 to Rs32.37 per unit. The article said K-Electric warned the reduction would have consequences for stakeholders, including consumers.

The payables increase is attributed to the dispute to the Tariff Differential Subsidy Agreement (TDSA) signed in January 2024 alongside the PPAA, which governs grid power supply to Karachi and subsidy payments for a 10-year term, including how disputed items are handled and how revised tariffs can be applied when challenged in court.