KE seeks adjustment of Rs58 billion claims

ISLAMABAD:The K-Electric has sought adjustment of Rs58 billion in claims for Multi Year Tariff (MYT) period from FY 2017 to FY 2023 and NEPRA has scheduled a public hearing on April 22 to examine the requests.

As per details, the National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on April 22, 2026, to examine K-Electric’s request for end-of-term adjustments (EoTA) and tax-related claims exceeding Rs58 billion for the period FY2017-2023, a move that could significantly impact the power consumers.

According to available document, the K-Electric has sought a total adjustment of Rs43.626 billion under the EoTA mechanism. The major component includes Rs23.432 billion on account of cost of working capital (adjusted for doubtful debts as of June 2016), followed by Rs11.056 billion due to exchange rate impact on allowed Return on Equity (RoE).

Additionally, KE proposed Rs10.449 billion under revised working capital requirements, while an amount of Rs1.311 billion has been deducted under the head of investments not incurred.

Separately, the utility has also filed claims worth Rs15.329 billion related to tax pass-through and other adjustments. This includes Rs7.496 billion for tax paid in the tax year 2023 and Rs3.006 billion as additional tax liability for tax year 2022 under minimum tax.

Further, KE has claimed Rs461 million under tax/WPPF pass-through and Rs261 million in pending adjustments related to power purchase. Another Rs4.105 billion has been requested as additional tax liability for the period 2018 to 2021 under minimum tax.

In its petition, K-Electric has also requested that any additional costs determined later—arising from pending assessments, adjudications, or revisions—be allowed after due verification, indicating the possibility of further financial impact beyond the currently claimed amount.

The power sector regulator (NEPRA) has framed key questions for the hearing, including whether the requested adjustments fall within the permissible scope of end-of-term adjustments and whether KE’s claimed investment figures are justified after accounting for any disallowances or inefficiencies.