Prime Minister Shehbaz Sharif has instructed the Power Division to develop a comprehensive solution for settling the long-standing receivables and payments between K-Electric (KE) and various government entities.
This directive was issued during a recent meeting focused on power sector issues.
According to a news report, the Power Division and the Cabinet Division, which oversees NEPRA, will collaborate to expedite the resolution of KE’s tariff and claims issues. NEPRA has announced hearing dates for KE’s tariffs.
Regarding shareholding matters, the Prime Minister directed the Securities and Exchange Commission of Pakistan (SECP) to examine the legality of KE’s shareholding and report back to the Special Investment Facilitation Council (SIFC).
It was also decided to conduct competitive bidding for Category-III wind Letter of Interest (LoI) holders to procure 300 MW for KE. The Private Power and Infrastructure Board (PPIB) prepared draft RFP documents and sent them to KE in March, with approval timelines set for June and August 2024.
At the meeting, NEPRA’s Chairman stated that KE’s write-off claims are under evaluation and efforts are being made to resolve these issues promptly. Recovery losses, common in other distribution companies, are managed through circular debt or consumer surcharges.
KE’s CEO informed that the company’s Multi-Year Tariff (MYT) expired on June 30, 2023, and new tariff petitions have been filed with NEPRA. On this matter, the Chairman of NEPRA assured that the tariff determination process for the post-June 2023 period would be expedited.
The Secretary of Power, Rashid Langrial, presented KE’s Indicative Generation Plan, which includes several projects converting units to 100% Thar Coal. These projects involve JPCL Coal Units, a new Thar Coal Power Project, and the conversion of HUBCO and Port Qasim Electric Power Company Limited units to Thar Coal.
The Secretary of Power also requested changes to the Government of Pakistan’s board members in KE’s Board of Directors, noting that a stay order from the Sindh High Court does not apply to government board members.
Key decisions from the meeting included NEPRA resolving KE’s issues, approving the conversion of JPCL Unit-I to Thar Coal, and KE assisting in changing the government board members in its Board of Directors.
