Power consumers to get Rs53b refund
The government is set to pass on Rs53.4 billion worth of refunds to electricity consumers across the country, including those of K-Electric, under quarterly tariff adjustment for the fourth quarter (April-June) of fiscal year 2024-25.
The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on August 4 on a petition filed by the Central Power Purchasing Agency-Guarantee (CPPA-G), which is seeking a downward adjustment mainly because of lower capacity payments following negotiated settlements with independent and government power producers.
According to CPPA-G data, the biggest reductions are proposed for Faisalabad Electric Supply Company (Rs15.579 billion), Lahore Electric Supply Company (Rs12.758 billion) and Multan Electric Power Company (Rs8.467 billion).
Other companies that want to release refunds for their clients are Gujranwala Electric Power Company (Rs6.132 billion), Islamabad Electric Supply Company (Rs1.04 billion), Peshawar Electric Supply Company (Rs2.7 billion), Hyderabad Electric Supply Company (Rs6.818 billion), Sukkur Electric Power Company (Rs504 million) and Tribal Areas Electric Supply Company (Rs2.985 billion).
However, Quetta Electric Supply Company wants to recover Rs3.594 billion from its consumers.
The total requested amount for variable operation and maintenance (O&M) cost is Rs182 million, use of system charges and market operator fee are estimated at Rs804 million and the impact of incremental units is calculated at negative Rs662 million.
Under the federal policy guidelines that ensure the application of uniform power tariffs across the country, Nepra said that the approved relief would also be extended to K-Electric consumers.
Earlier this month, in a bold assertion of its regulatory autonomy, Pakistan's power-sector watchdog notified K-Electric's long-delayed multi-year tariffs for supply, distribution and transmission through 2030, which came despite an unresolved review motion filed by the federal government.
The regulator notified an increase of Rs6.15 per unit in base tariff for K-Electric consumers. The government implements a uniform tariff across the country, for which it provides subsidy for K-Electric consumers.
Nepra moved ahead with the notification after determining that no legal bar existed to halt its implementation. It invoked its enhanced powers under a 2021 legal amendment, which allows the regulator to issue tariff notifications directly – the authority that previously rested with the federal government.
The move reflects pressure from international lenders, notably the International Monetary Fund (IMF) and the World Bank, to depoliticise tariff setting and fast-track power sector reforms.
"This situation could impair K-Electric's financial health and undermine power supply continuity, ultimately affecting consumers and the broader energy market," Nepra said in its statement.
The newly notified average power supply tariff for K-Electric is Rs39.97 per kilowatt-hour (kWh) for 2023-24, comprising Rs31.96/kWh in power purchase cost, Rs2.86 for transmission, Rs3.31 for distribution and Rs2.28 in supply margin. A prior year adjustment of minus Rs0.44/kWh has also been included.
Nepra estimated the company's total revenue requirement for financial year 2023-24 at Rs606.9 billion, with Rs34.7 billion allocated for supply margin and Rs36.2 billion set aside to cover recovery losses.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
6 hours ago
- Business Recorder
Order issued by Sindh ombudsman: KE CEO denies charges
KARACHI: K-Electric (KE) CEO Moonis Alvi vehemently denies charges of harassment in the 22-page order by the Sindh ombudsman on Thursday, categorically stating that he is set to appeal the decision that his lawyer termed an 'unreasoned order'. In a series of tweets on X, Alvi – the longest-serving CEO of KE – said that he was going to fight back. 'The recent verdict is deeply distressing to me,' he said on X. 'While I respect the legal process and the institutions that uphold it, I must, in good conscience, state that the findings do not reflect the truth of the situation as I experienced it. 'I am currently reviewing the decision with my legal counsel and will be exercising my right to appeal… I remain committed to ensuring that the truth is fully brought to light, through all lawful means available.' On behalf of Alvi, Senior Counsels Barrister Abid S Zuberi and Barrister Ayan Memon announced the intention to appeal. 'We respect the honourable court and all its decisions. However, in light of serious procedural and legal inconsistencies, we are moving to appeal this decision before the appropriate forum and are confident that justice will prevail. 'The distorted framing of performance feedback as harassment, imposition of severest penalty without reasoned rationale and anchoring of baseless allegations are massively concerning. 'Mr Alvi gave full disclosure of work performance-related issues of the complainant and retaliatory complaints after her termination. These facts have been totally ignored. 'A substantial portion of the order has been dedicated to frivolous allegations, not backed by hard evidence.' In his message on X, KE Spokesperson said that today's decision by the Ombudsman has been a challenging moment for the KE family, for our stakeholders and well-wishers alike. On behalf of KE, want to state unequivocally: KE stands by the principles of truth, due process, and the values of a professional and respectful workplace. Copyright Business Recorder, 2025
Express Tribune
16 hours ago
- Express Tribune
Sindh Ombudsman finds KE CEO guilty of harassment, orders removal
Listen to article The Sindh Provincial Ombudsman has ordered the immediate removal of K-Electric's Chief Executive Officer, Moonis Alvi, and imposed a fine of Rs2.5 million after finding him guilty of workplace harassment. The order came in response to a complaint filed by Mahreen Aziz Khan, a former consultant and the company's first female CxO since its corporate restructuring began in 2009. The complaint, lodged in November 2020 under the Protection Against Harassment of Women at the Workplace Act, 2010, accused Alvi of harassment and creating a hostile environment. In his verdict, Justice (retd) Shahnawaz Tariq, who presided over the case, stated that Alvi had committed harassment and caused psychological distress to Khan and her team. Also Read: Pakistan launches new remote sensing satellite from China 'Accused No.1 Moonis Abdullah Alvi has committed harassment, created hostile environment and caused mental agony at the workplace to the complainant Mahreen Aziz Khan and her team,' the ruling said, citing Section 2(h) of the Act. The Ombudsman ordered Alvi's removal from service under Section 4(ii)(d) of the Act and directed him to pay the fine within one month. In case of non-compliance, the verdict allows for the seizure of his movable and immovable assets, and the blocking of his national identity card and passport. Three other individuals — Rizwan Dallal (Chief People Officer), Col (R) Wahid Asghar (Chief of Security), and Khalid Rafi (Board Member, HR Committee) — were also named in the original complaint but were discharged due to lack of evidence. 'In the absence of direct evidence, the allegations against the three co-accused could not be substantiated,' the ruling said. In a statement shared on social media platform X (formerly Twitter), Alvi expressed disappointment with the ruling. I have always upheld the values of integrity and dignity in professional interactions, and I deeply believe in fostering safe and inclusive workplaces for all. The recent verdict is deeply distressing to me. While I respect the legal process and the institutions that (1/4) — Moonis Alvi (@alvimoonis) July 31, 2025 'I have always maintained professionalism and integrity in all workplace relationships,' he said. 'The recent verdict is extremely distressing. I respect the legal system, though the outcome does not reflect the reality of my experience.' Alvi added that he is reviewing the decision with legal advisors and intends to appeal.
Business Recorder
a day ago
- Business Recorder
Sindh ombudsman orders to remove KE CEO Moonis Alvi for workplace harassment
The Sindh ombudsman has ordered to remove Syed Moonis Alvi from his position of K-Electric's chief executive officer (CEO), over his alleged involvement in a case pertaining to workplace harassment. Sindh Ombudsman for the Protection against Harassment of Women at the Workplace Justice (retired) Shah Nawaz Tariq has also imposed a fine of Rs2.5 million on Alvi in the same case. After allegation of harassing a woman was proven against him, the KE CEO must pay the fine within one month to the complainant through the registrar of the ombudsman's office, the Sindh government official stated. Meanwhile, Alvi has termed the ombudsman's decision 'deeply distressing' for him, saying the findings did not reflect the truth of the situation as he experienced it. Justice (retired) Tariq said in his decision that the KE CEO Alvi harassed and mentally tortured the complainant. 'If Moonis Alvi fails to pay the fine, his movable and immovable property should be confiscated,' he ordered. The ombudsman also stated that if Alvi does not pay the fine, his computerised national identity card (CNIC) and passport should also be blocked. Alvi was appointed CEO of KE in June 2018. Under his leadership, KE has undertaken a series of investments across the energy value chain. These investments include the development of 900 MW RLNG-fired power plant. He joined KE in 2008 and has served as the company's Chief Financial Officer and also held the roles of Company Secretary and Head of Treasury. Alvi holds 30 years of diversified experience in finance, financial planning, and capital restructuring. He is a Fellow member of the Institute of Chartered Accountants of Pakistan.
