Review tariff determinations as per SHC orders: KE tells PD to halt actions

ISLAMABAD: K-Electric has warned the Power Division to immediately cease and desist from all actions, directions or communications premised upon, or giving effect to the Review Tariff Determinations in respect whereof interim orders of Sindh High Court.

In a letter to Power Division and its attached entities, the Chief Executive Officer (CEO), KE Moonis Alvi cited the letters of Deputy Secretary (T&S), Syed Mateen Ahmed, highlighting that the letters neither refer to nor respond to KE’s recent correspondences on the matter.

The power utility company categorically reiterated and maintained the content of its earlier letters of December 15, 2025, and January 12, 2026, saying that the untenable positions adopted in MoE letters already stand fully answered, rejected and denied therein. KE’s legal and contractual position remains unchanged.

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Moonis said for clarity and avoidance of doubt, KE reiterates the correct state of affairs as follows: (i) without prejudice, it is stated with utmost clarity that actions and directions emanating from letters issued by MoE are prima facie in derogation of subsisting interim orders of the High Court and exposes the Respondents in the latter petitions and others, to contempt of court; (ii) further, KE respectfully submits that the position taken by MoE, that clause 2.1(b) of TDS Agreement is not applicable on the ground that the tariff has already been determined, is legally untenable, misconceived and based on an incorrect and misreading of clause 2.1(b).

In any event apart from the fact that the matter is sub-judice in the high court wherein interim orders operate, even clause 2.1(b) stipulates tariff which has not been “determined or notified”.

The tariffs in this case for the Review Determinations are not notified. The tariff determinations relied upon in MoE letters are sub-judice and in respect whereof interim orders of the High Court of Sindh hold the field. Clause 2.1(b) specifically provides that in case of restraining orders issued by competent court of law, the preceding tariff shall be employed for the filing of TDS claims which KE has complied with ; and (iii) under clause 2.6 of the TDS Agreement, the TDS balance report cannot unilaterally be prepared, revised or amended by MoE.

Moreover, the revisions done by MoE are on the basis of a tariff currently sub-judice in High Court, wherein interim orders operate till date.

According to KE Power Division stand constitutes (i) a deviation from the express terms of the TDS Agreement, and (ii) clear violation of the Court’s order. Hence, such revised balance report has no effect for all legal or other purposes and cannot be relied upon for an action. In view of the foregoing, the TDS balance reports prepared and signed by KE stand ‘deemed signed and acknowledged’ by MoE.

The CEO KE further stated that the balance report prepared and submitted by KE under clause 2.6 of the TDS Agreement itself includes a reconciliation between the parties which either case be counter signed by MoE or in case of disagreement the same must be processed strictly through Dispute Resolution mechanism prescribed in clause 4 of the TDS Agreement.

Therefore, the stance taken by MoE that KE has to prepare reconciliation separately before submitting Balance Report is invalid.

Further, under the provisions of the TDS Agreement MoE cannot return TDS Balance Report submitted by KE. In case of any disagreement, the same must be processed strictly through stipulated Dispute Resolution Mechanism.

Accordingly, KE has called upon Power Division to immediately cease and desist from all action directions or communications by MoE premised upon or giving effect to the Review Tariff Determinations in respect whereof interim orders of the High Court operate till date KE reserves all legal, contractual and equitable rights, including recourse to appropriate judicial proceedings, without further notice.

Copyright Business Recorder, 2026