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ISLAMABAD: The Power Division has warned Karachi Electric (KE) to clear payment against additional supply from the national grid or face severe action such as reduction in quota or complete disconnection.

This warning was issued by the Power Division on April 8, 2022, in a letter to the chief executive officer (CEO) Karachi Electric.

Presently, the KE is being supplied 800-900 MW electricity due to revision in quotas of all the Discos, despite the fact the power utility is not meeting its payment obligations.

“We have limited them to 800-900 MW but sometimes the company withdraws more than its allocation, unilaterally,” said an official.

On March 29, 2022, the Central Power Purchasing Agency–Guaranteed (CPPA-g) has informed that the K-Electric is not making any payment even against the additional supply from the National Grid since November 2021, despite its firm commitment.

KE proposes amendments in draft AA

Now, the outstanding liabilities towards CPPA-G have soared to Rs48.358 billion till February 28, 2022 and were continuously increasing day by day, the sources added.

According to CPPA-G, the K-Electric had send a cheque No 00004439 maintained at HBL Plaza Branch, Karachi, amounting to Rs3.895 billion of February 18, 2022 against “November 2021 settlement advice”.

However, the cheque has not been credited to the CPPA bank account to date.

“It is a matter of great concern and alarming that the K-Electric is not fulfilling its legal and financial obligations despite its firm commitments. The non-payment to the power generators will lead to a reduction in electricity generation, which may result in the disconnection of additional supply to K- Electric during Ramadan and onward,” warned Power Division.

K-Electric, sources said, has strongly been advised to fulfil financial and legal commitments and clear all its current and outstanding liabilities towards CPPA-G, as soon as possible, enabling the National Grid to maintain its continued supply during Ramadan.

Copyright Business Recorder, 2022

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