Nepra allows partial claims in response to KE write-off petition
The power utility company had revised claims of unrecoverable amount of Rs 76.034 billion in receivables spanning seven years (2017–23) from Rs 67.902 billion pertains to the period prior to 2022 by including Rs 8.131 billion additional write-off claims for 2023.
According to KE, it is important to highlight that the consumers were not paving overdue balances despite efforts and the settlement scheme/conversion of hook connection to metered connection given to incentive consumers, which was necessary for recovery of long outstanding dues from the defaulted consumers and/or to make them regular payers. If the Company had not offered settlement scheme/conversion of hook connection to metered connection to the defaulted consumers, these consumers would have continued to consume electricity without payment of dues hence, resulting in further accumulation of dues.
In that case the amount claimed or write-off would have been higher than the amount of write-off currently being c aimed by the Company. Moreover, in case of correction of bills/detection billing, the amounts and units billed to consumers are reversed in system and are recorded as reversal of revenue.
KE claimed Rs. 15.211 billion including GST for metered connections on account of settlement schemes out of the current MYT billing.
According to KE, initially these connections were disconnected but reconnected after settlement schemes/consumer agreeing to convert to metered connections as per the categories of write off claims verified by the Auditors. This includes consumers in Payment Loyalty Reward (PLR) Schemes, overdue debts on account of consumption through single bulk connection and settlement schemes and consumers agreeing to convert hook connections to metered connections.
According to K-Electric CEO Moonis Alvi, 'with this decision, majority of items pending to the previous control period have come to a close. KE looks forward to the MYT for the control period spanning FY 24 to FY 30, committed to meeting its serviced territory's energy needs.'
The decision was released after public hearings and extensive deliberations that allowed all stakeholders to voice their concerns that were addressed by KE management. The submissions to Nepra underwent strict internal scrutiny as well as external verification by well-accredited and renowned audit firms as required by the Nepra in line with KE MYT 2017-2023.
'These costs were part of the Multi-Year Tariff awarded to the utility for the period 2017-2023, and have been approved after stringent benchmarks, audits and fulfillment of conditions laid down by Nepra in its tariff determination,' said Muhammad Aamir Ghaziani, Chief Financial Officer at KE.
Arif Bilwani, Munem Zafar, Ameer Jamaat-e-Islami ,Rehan Javed and some other consumers had challenged the write-off claims of KE.
Majority of the stakeholders objected to the additional and pending write off claims. The representative of JI raised the issue of bogus bills which are subsequently claimed as write off and referred his letters of May27, 2024 and January 3, 2025. Arif Bilwani also raised similar concerns regarding bogus billing.
Bilwani also highlighted that there is a substantial increase in the write off claims in later years of the MYT as compared to the initial years. KE clarified that the reason for such increase is the increase in sales revenue. For example, sales revenues of private consumers increase from Rs. 169 billion in FY 2017 to Rs. 411 billion in FY 2023, thereby more write offs in FY 2023 as compared to FY 2017.
On the other hand Shahid Khaqan Abbasi, ex-Prime Minister and former head of Task Force on KE issues, Omar, Junaid Ameen, Areeba Shahid and Bilal Asghar supported the claim of KE.
NERPA further stated that it is 'conscious of the fact that all possible efforts have already been made by K-Electric, as confirmed by the auditors.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
8 hours ago
- Business Recorder
SPI-based inflation up 0.05pc WoW
ISLAMABAD: The Sensitive Price Index (SPI)-based inflation witnessed nominal increase of 0.05 percent for the week ended August 7, 2025 compared to 0.35 percent in the previous week. Major increase is observed in the prices of onions 16.53 percent, tomatoes 10.17 percent, chicken 4.12 percent, eggs 1.32 percent, diesel 0.52 percent, masoor 0.34 percent, tea prepared 0.31 percent, mustard oil 0.20 percent, cigarettes 0.12 percent, firewood 0.08 percent, and fresh milk 0.05 percent. On the other hand, major decrease is observed in the prices of LPG 3.21 percent, petrol 2.75 percent, bananas 1.56 percent, moong 1.09 percent, maash 1.07 percent, potatoes 0.44 percent, sugar 0.37 percent, garlic 0.36 percent, rice basmati, broken rice 0.28 percent and wheat flour 0.24 percent. During the week, out of 51 items, prices of 12 (23.53 percent) items increased, 12 (23.53 percent) items decreased and 27 (52.94 percent) items remained stable. The year-on-year trend depicts an increase of 1.73 percent. Major increase is observed in the prices of ladies sandal 55.62 percent, gas charges for Q1 29.85 percent, sugar 21.75 percent, beef 14.15 percent, vegetable ghee 1kg 11.58 percent vegetable ghee 2.5kg 12.20 percent, moong 12.09 percent, firewood 11.22 percent, gur 10.94 percent, cooked beef 9.31 percent, bananas 9.29 percent, and lawn printed 7.32 percent. While a major decrease is observed in the prices of onions 55.34 percent, garlic 26.43 percent, mash 22.99 percent, wheat flour 22.01 percent, tomatoes 21.42 percent, tea Lipton 17.93 percent, potatoes 16.91 percent, electricity charges for Q1 10.02 percent, pulse gram 9.87 percent and LPG 5.68 percent. The SPI for consumption groups up to Rs 17,732 with an increase of 0.30 percent recorded at 316.97 points compared to 316.01 points in previous week. The SPI for consumption group of Rs 17,732 to 22,888 up by 0.26 percent was recorded at 316.92 points against previous week's calculation of 316.10 points. Whereas, the SPI for the income group Rs 22,889-29,517 with an increase of 0.19 percent was recorded at 339.77 points against previous week's recording of 339.14 points. The SPI for the income group Rs 29,518-44,175 with an increase of 0.14 percent was recorded at 327.62 points against previous week's reading of 327.85 points and SPI for the monthly income group above Rs 44,175 registered a decrease of 0.06 percent at 327.66 points against 327.85 points of the previous week's calculation. The combined increase for all expenditure groups recorded at 328.12 points compared to 327.94 points of previous week registering a nominal increase of 0.05 percent. Copyright Business Recorder, 2025
Business Recorder
8 hours ago
- Business Recorder
FTO directs DG I&I-IR to dig out cybercriminals who used IP addresses for introduction of fake supplies in supply chain
ISLAMABAD: Federal Tax Ombudsman (FTO) has strictly directed the Director General Intelligence and Investigation (I&I) Inland Revenue to dig out the cybercriminals who used the IP addresses for introduction of fake supplies in the supply chain and also find the original subscriber/criminal using VPNs. According to another order of the FTO on cyber criminals, the FTO observed that the illegal misuse of password ID and fraudulent filing of the sales tax return, introducing fake supplies of Rs 133.125 million through Annexure-C with sales tax impact of Rs 23.962 million, resulting in multiple issues in filing of sales tax returns of subsequent tax periods, tantamount to maladministration. The FBR should direct Chief Commissioners -IR, RTO Quetta, to ensure legal proceedings for conviction against the crime of tax fraud. Director General I & I must find the cybercriminals either within or outside the company who used the IP addresses for the introduction of fake supplies in the supply chain for conviction under the law, including building capacity to find the original subscriber/criminal using VPN. FTO unearths tax fraud case involving cyber criminals Briefly, the complainant is a senior citizen, 68 years old, registered in sales tax w.e.f August 5, 2008 as a commercial importer. This incident of huge tax fraud came to light when the complainant tried to file his sales tax return for April 2025. It was found that some cyber criminals illegally misused his password ID and fraudulently updated Form and filed the sales tax return for the tax period April 2025 introducing fake supplies of Rs 133.125 million through Annexure C with GST impact of Rs 23.962 million. The immediate/ prompt action by the Commissioner Quetta is highly appreciable in protecting the loss of Govt revenue in the supply chain. However, the concerned Commissioner of RTO Quetta is required to take further action, including registration of FIR as per Standard Operating Procedures (SOPs) to deal with Cases Involving Fake/Flying Invoices outlined in Sales Tax General Order No.12 of 2023. The beneficiary of the fake transactions M/s Rafi Enterprises, a taxpayer of RTO Quetta knowingly and deliberately purchased fake invoices, without any actual physical movement/transaction of goods and without payment as prescribed under section 73 of the Act, to evade sales tax. The beneficiary was fully aware of the purchase of fake/flying invoices, without the physical transfer of any goods, with the intent to evade payment of tax. The present loose and liberal enforcement regime has emboldened these unscrupulous registered persons to indulge, without the fear of being caught, in the lucrative business of the use of fake/flying invoices. The edifice of sales tax law is erected on the glorious principle of self-assessment where complete trust is reposed in the taxpayers for submitting true & faithful declarations. To deter misutilization of such trust, the law also has an in-built penal & prosecution mechanism. Therefore, the Department after having established the case of tax fraud against all the ultimate beneficiaries in using fake/flying invoices, shall not stop short of registering an FIR against the perpetrators of such tax fraud under the relevant legal provisions but should vigorously pursue their cases during the prosecution stage, FTO order added. Copyright Business Recorder, 2025
Business Recorder
8 hours ago
- Business Recorder
Profit-taking drags PSX down
KARACHI: The Pakistan Stock Exchange ended the week on a subdued note as profit-taking erased early gains with sentiment dampened by concerns over a widening trade deficit, foreign outflows, and provincial tax collection shortfalls. The benchmark KSE 100 Index closed at 145,382.80 points, a decrease of 264 points or 0.18 percent from the previous session's 145,647.14 points. It initially showed positive momentum, gaining to an intraday high of 146,813.44 points. However, investors opted to book gains before the weekend, causing the index to decline. Topline Securities reported that investors preferred to book gains before the weekend. Top positive contributors to the index included ENGROH, FFC, OGDC, and MCB, which collectively added 395 points. In contrast, EFERT, LUCK, SYS, MARI, and HUBC lost value, weighing down the index by 399 points. On Friday, BRIndex100 closed at 14,918.12 points which was 3.94 points or 0.03 percent lower than previous close and the total volume remained 420.611 million shares. BRIndex30 closed at 42,334.27 points which was 245.27 points or 0.58 percent lower than previous close and the total volume was 203.423 million shares. The broader market reflected this downturn. In the ready market, 296 companies saw a decrease in their rates, while 151 experienced an increase, and 35 remained unchanged in the total 482 active companies. Turnover and traded value decreased across the board. The ready market's turnover dropped to 548.05 million from the previous day's 712.527 million shares. Traded value in the market also decreased to Rs45.48 billion from Rs55.67 billion in the previous session. The market capitalization for the regular market was Rs17.342 trillion, which is a decrease of Rs33 billion from the previous day's value of Rs17.375 trillion. Among the top performers in the ready market, Pak Petroleum had the highest turnover at 21.96 million and closed the day at a rate of Rs188.23. Following closely was Bank of Punjab, with a turnover of 21.25 million shares traded and a closed at of Rs13.92. The third company was Loads Limited, which recorded a turnover of 20.56 million shares and closed at a rate of Rs16.58. Companies reflecting increase in rates include Ismail Industries Limited whose share price increased by Rs 70.39, and closed at Rs 2,172.38. While Supernet Technologies Limited increased by Rs43.11, closing at Rs802.60. Conversely, PIA Holding Company Limited (B) saw the most significant rate decrease, falling by 478.14 to close at 29,379.66. Moreover, Nestle Pakistan Limited also lost Rs87.02 and closed at Rs8,950.56. The BR Automobile Assembler Index settled at 23,371.17 points, down 172.54 points or 0.73 percent, with a turnover of 2.90 million shares. The BR Cement Index ended at 11,266.98 points, registering a decline of 120.58 points or 1.06 percent, on a volume of 23.58 million shares. Closing at 42,538.55 points the BR Commercial Banks Index slipped 9.79 points or 0.02 percent, with 56.59 million shares traded. The BR Power Generation and Distribution Index closed at 22,744.93 points, losing 121.31 points or 0.53 percent, on a turnover of 22.36 million shares. Finishing at 13,079.63 points, the BR Oil and Gas Index dropped 67.76 points or 0.52 percent, with a total volume of 71.71 million shares. Meanwhile, the BR Technology and Communication Index ended the day at 3,314.74 points, down 31.81 points or 0.95 percent, with 53.74 million shares changing hands. In his post session commentary, Ahsan Mehanti of Arif Habib Corporation said that stocks closed under pressure amid profit taking in overbought scrips. Concerns remain over the $2.8bn trade deficit for July 25 swelling by 44 percent year on year basis. Foreign outflows, concerns for provincial tax collection shortfalls and missed cash surplus target under IMF conditions and political noise played a catalyst role in bearish close at PSX, he added. Copyright Business Recorder, 2025
