Islamabad: Karachi Electric (KE) has urged the Power Division to release its pending claims of Rs 170 billion as the company is facing financial hardships.
In a letter to concerned ministers, the power utility said that on July 26, 2023, KE requested the Power Division to process the release of pending claims, notification of Schedule of Tariffs (SoTs) determined by NEPRA and verification of Tariff Differential Claims (TDC) filed by KE. According to the company, NEPRA’s determinations of March 10, 2021 and December 2019 in the matter of quarterly variations for the period from July 2016 to March 2020 are yet to be notified by the Power Division, as a result of which TDC amounting to Rs 92.6 billion is stuck up. Furthermore, the power utility argues that claims amounting to Rs 66.3 billion which have been verified and approved by the competent forum are pending release. In addition, KE has filed claims with respect to relief provided to zero rated industrial consumers, claims of Industrial support package 2 and 3 and agricultural Tube-well subsidy claims amounting to Ra 10.9 billion, which are pending for verification.
The power utility has also claimed that verification of claims is required to be done within five days as per SRO 1245 (I) 2007 of December 19, 2007, as amended from time to time; however, these have still not been verified. KE argues that delays in respect of the pending matter has resulted in significant accumulation of TDC balance, straining the already stretched position of Company’s working capital, thereby 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.
Copyright Business Recorder, 2021