KE urges PD to expedite process of verification, release of pending TDCs

ISLAMABAD: Karachi Electric (KE) has urged Power Division to expedite process of verification and release of pending Tariff Differential Claims (TDCs) as the power utility is already facing working capital issues.

In a letter to Power Division, KE’s Director Finance, Ayaz Jaffar Ahmed has cited the reference of Power Division’s letter of March 29, 2022, regarding updated status of Extension of Abolishment of Time-Of-Use (ToU) Tariff Scheme for industrial consumers, adding that benefit of Abolishment of ToU is being extended to industrial consumers in line with GoP directions including letter of April 30, 2021, which was further confirmed through NEPRA’s decision of June 17, 2021.

Accordingly, KE has extended benefit of Rs 3.890 billion to industrial consumers with respect to Abolishment of ToU Scheme for the period November 2020, to February 2022, and submitted claims to Ministry of Energy (Power Division). However, total amount remains outstanding to date.

He maintained that KE is implementing the GoP’s directions to provide benefit to consumers under different packages announced from time to time and shared a status through letter of March 14, 2022.

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However, delays in verification and release of Tariff Differential Subsidy (TDS), including the packages has resulted in significant accumulation of Tariff Differential Claims (TDC) balance and the balance of TDC receivable has reached an alarming level of Rs 315 billion (Feb 2022), including balance of ToU benefit, and straining the already stretched position of Company’s working capital. Further, the recent exorbitant increase in fuel prices is seriously impacting on KE’s ability to make payments for power purchases and/or fuel supplies as well as the execution of planned investment projects which are critical to bridge the demand-supply gap and for smooth and reliable supply of power to consumers.

After explaining the background, KE has requested the Power Division to expedite the process of verification and release of pending balances.

Copyright Business Recorder, 2022