Latest news with #KE
Express Tribune
17 hours ago
- Business
- Express Tribune
KE agrees to pay Sindh Rs9b electricity duty
Additional concerns were raised over capacity payments to K-Electric's power plants, projected to cost over Rs 82b. PHOTO: FILE The K-Electric (KE) after several years of delay has started payments of electricity duty amounting to Rs32 billion, it has collected from consumers through monthly bills, to the Sindh government. As per the agreement, the power utility has agreed to pay Rs1.25 billion to the provincial government in two installments. This move is part of a broader agreement under which KE has committed to pay Rs9.142 billion out of a total outstanding amount exceeding Rs32 billion. A payment schedule has also been issued. According to the agreed timeline, the power utility will pay Rs4.258 billion to the Sindh government by September 2025. Additionally, the K-Electric will now be required to regularly remit the electricity duty it collects from consumers through monthly bills. The issue of non-payment of electricity duty was taken up by the Public Accounts Committee (PAC). Meanwhile, the Rs25 billion dues between KE and the Karachi Water and Sewerage Board remain unresolved. K-Electric has warned government departments of potential disconnection if bills are not paid on time. The power utility in its letter to the secretary of the Sindh Energy Department referred to the discussion between KE team and PAC members on June 31, during which payment with respect to Electricity Duty (ED) was deliberated upon. As agreed, reconciled electricity consumption dues of the Karachi Water and Sewerage Corporation (KWSC) will be held for adjustment against ED accumulated up to August 2024 and the excess amount of ED for the said period shall be paid by KE in line with the agreed installments as reflected in the schedule. Furthermore, KE will also deposit the respective ED amount for the period from September 2024 to September 2025, no later than 30th September 2025, into the respective Government Treasury. Moreover, it was also discussed that payment to KE for electricity dues by Sindh government and its various departments should also be paid on timely basis failing which, KE would be at liberty to take appropriate action including, but not limited to, disconnection of the respective electricity connections albeit in accordance with law.
Business Recorder
6 days ago
- Business
- Business Recorder
Nepra issues pending notifications for KE tariffs
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has issued pending notifications for K-Electric's (KE) supply, distribution, and transmission tariffs for the period 2023–24 to 2029–30 under the Multi-Year Tariff (MYT) regime, stating that the federal government's pending review motion does not legally restrain the regulator from notifying its earlier determinations. Previously, the federal government was responsible for issuing tariff notifications. However, amid prolonged delays and under pressure from the International Monetary Fund (IMF) and the World Bank, the law was amended in 2021, granting NEPRA the authority to notify tariffs directly. 'It is now the duty of the Authority to issue the requisite notifications of its determinations if the government fails to do so or if any reconsideration request remains pending,' official sources said. Under Rule 31 of the NEPRA Act, the Authority can issue such notifications if the federal government does not act within the specified time. DISCOs and KE: Nepra approves revised average uniform SoT Although the government's review motion is still under consideration, NEPRA clarified that if it revises its previous determinations, the tariffs will be amended accordingly. In a related development, Deputy Prime Minister and Foreign Minister Ishaq Dar recently chaired a high-level, confidential meeting to discuss KE's ownership issues involving Al-Jomaih, following a strongly worded letter from Pakistan's Ambassador to Saudi Arabia. KE's average power supply tariff has been fixed Rs 39.97 / kWh which includes power purchase excluding transmission cost of Rs 31.96 per unit, transmission cost of Rs 2.86 per unit, distribution cost Rs 3.31 per unit, supply margin Rs 2.28 per unit and Prior Year Adjustment negative Rs 0.44 per unit. The power utility company's total revenue requirement is estimated to be Rs 606.920 billion, for FY 2023-24, of which supply margin will be Rs 34.681 billion, O&M cost Rs 5.91 billion, working capital negative Rs 1.244 billion, recovery loss, Rs 36.253 billion, gross margin Rs 40.921 billion, other income negative Rs 6.240 billion, net margin Rs 34.681 billion and prior year adjustment negative Rs 6.690 billion. The Authority also considering the fact that FY 2023-24 has already lapsed and FY 2024-25 is almost 11 months gone, also obtained ICE's actual recovery ratios for the FY 2023-24 and FY 2024-25. As submitted by KE its actual recovery for the FY 2023-24 remained at 91.50%, whereas FY 2024-25 is expected to close at 90.50%. The financial impact of under recovery of 8.50% for FY 2023-24 and 9.50% for FY 2024-25, as reported by KE, is around Rs.40 billion and Rs.57 billion respectively. The Authority noted that return allowed to KE for its distribution function is around Rs.21.6 billion, meaning thereby that effectively KE would be incurring losses for the first 02 years of MYT, if no recovery loss is allowed to KE. This may compromise the financial viability of the company, which is neither in the interest of the consumers nor power system as whole. In another notification NEPRA has approved distribution tariff of Rs 3.31/ kWh and Rs 2.684 / kWh for investment of Rs 43.447 billion during the validity of MYT. Copyright Business Recorder, 2025
Express Tribune
6 days ago
- Business
- Express Tribune
KE base tariff raised by Rs6.15 per unit
Prior approval to NEPRA K-electric consumer may seen a huge relief over electricity bills. PHOTO: FILE In a bold assertion of its regulatory autonomy, Pakistan's power watchdog has notified K-Electric's long-delayed multi-year tariffs for supply, distribution, and transmission through 2030 — despite an unresolved review motion by the federal government. The power regulator has notified Rs6.15 per unit increase in base tariff for KE consumers. The government implements uniform across the country and government provides subsidy for KE consumers to implement uniform tariff. The National Electric Power Regulatory Authority (Nepra) moved ahead with the notification after determining that no legal bar existed to halt implementation. It invoked its enhanced powers under a 2021 legal amendment, which allows the regulator to issue tariff notifications directly — authority that previously rested with the federal government. The landmark move reflects pressure from international lenders, notably the IMF and the World Bank, to depoliticize tariff-setting and fast-track power sector reforms. "This situation could impair KE's financial health and undermine power supply continuity, ultimately affecting consumers and the broader energy market," Nepra warned in its statement. The newly notified average power supply tariff for KE stands at Rs 39.97 per kilowatt-hour for 2023-24, comprising Rs 31.96/kWh in power purchase cost, Rs 2.86 for transmission, Rs 3.31 for distribution, and Rs 2.28 as the supply margin. A prior year adjustment of minus Rs 0.44/kWh has also been included. Nepra estimated KE's total revenue requirement for FY 2023-24 at Rs 606.9 billion, with Rs34.7 billion allocated for supply margin and Rs 36.2 billion set aside to cover recovery losses. Despite the formal tariff approval, KE's finances remain under severe pressure. With bill recovery slipping to 91.5pc in FY 2023-24 and projected to fall to 90.5pc next year, the utility could face cumulative under-recoveries nearing Rs97 billion over two fiscal years. Nepra cautioned that KE's permitted Rs21.6 billion return on distribution operations might be wiped out without government support or adjustments. Nepra simultaneously approved a distribution tariff of Rs 3.31/kWh and Rs 2.684/kWh specifically to support a Rs 43.4 billion investment plan over the seven-year Multi-Year Tariff period. The government had challenged K-Electric's multi-year tariff (2024-30) approved by the power regulator last week, alleging the utility got an undue favour of Rs750 billion over the seven-year period at the cost of the national exchequer, power consumers across the country and taxpayers at large. In a statement, the power division had announced that the six tariff interventions allowed by Nepra to KE entailed a financial impact of Rs453bn spread over seven years. On top of that, the division added, a fuel cost impact higher than the national average for 2024-25 alone meant an additional cost of Rs41bn, which even if it remains flat would translate into Rs287bn in seven years. The division said the government position was to seek review of the Nepra determination to ensure fairness and uniformity, tariff must reflect actual costs and reasonable returns to protect consumers and there should be no extra allowance for inefficiency.
Business Recorder
16-07-2025
- Business
- Business Recorder
KE's two-decade journey: a privatisation that delivered—II
When discussing KE's generation portfolio, it's important to recognize that both private and public sector utilities operate within a regulated environment. Any investment in generation requires NEPRA's approval and must align with the Government of Pakistan's energy policies. In recent years, KE has been advised to off-take power from the national grid due to surplus available in the national grid —leading to the abandonment of KE's several planned power plants including the 700MW coal project. Ironically, the same critics who urge KE to tap into central capacity often also call for greater self-generation by individual consumers, without acknowledging the inherent contradiction in these demands. KE's two-decade journey: a privatisation that delivered—I Misunderstandings further persist and KE's write-offs for unrecoverable bills often draw headlines about 'double benefits.' Yet the mechanism is neither novel nor opaque: regulated utilities the world over recognise prudent costs after exhaustive audits. Any recoveries that later materialise are netted off in future filings. Similarly, in the case of alleged claw-back amounts that are currently before the court, KE disputes only the interpretation, not the formula nor the principle, and will comply with whatever the honorable court decides. On matters of safety, it is important to clear facts. For FY2023, Nepra investigated 33 electrocution-related incidents in KE's jurisdiction. What critics easily ignore is the fact that in 32 of these, the authority found no negligence on KE's part. Many of these incidents occurred within consumer premises or involved third-party encroachments, underscoring the shared nature of safety responsibility in dense, urban environments, most of which is outside KE's purview. Talking about captive plants and RLNG imports, one must ask: where were these critics when the entire country had to rely on costlier fuel because of captive preference? Every power plant must be backed by a secure fuel supply, and in the absence of local gas, KE did what was necessary to keep the city running. Now when the ministry has instructed captive to move back on the grid, concerns have been raised about KE charging a 'hefty fee' to convert captive plants to grid supply. It's important to understand that these costs are not arbitrary charges but are aligned with NEPRA-approved regulations and technical requirements. When a captive generation facility transitions to grid supply, it often requires dedicated infrastructure; new metering, protection systems, reinforcement of the nearest grid point and in fact a new grid to be set up in some cases; all of which involve material costs. These investments are necessary to ensure grid stability, safety, and quality of supply for both the industry and surrounding consumers. Moreover, KE does not profit from these charges. They are calculated based on actual technical scope and verified through internal and third-party checks. Where complaints have been raised, KE has reviewed them and wherever required, streamlined the process, reduced costs through engineering alternatives, or offered installment-based facilitation. It's also worth noting that as fuel prices for captive plants have increased, many industries are now returning to grid power voluntarily, recognizing that stable, merit-order-based electricity is both more economical and less administratively burdensome in the long run. What often gets overlooked in these debates is that privatization alone is not reform. The government may have privatized one utility, but it has not yet deregulated the power sector. True transformation will only come when the entire ecosystem — generation, transmission, and distribution — is opened up to competition under a non-exclusive licensing regime. Until then, companies like KE are expected to deliver world-class service while operating in a regulated environment. The push for CTBCM and market liberalization is the right direction, but it needs acceleration. The real innovation lies not in hardware-heavy prescriptions from the 1980s, but in building service-driven utilities that operate like customer-centric platforms, capable of adapting to how people live and consume electricity today. That shift is already underway. From renewables and smart meters to apps like KE Live, the modern utility is no longer just a wire-and-pole provider—it's a digital service partner. Customers today need electricity that adapts to their lifestyle—whether it's battery backup during unconventional hours, or real-time usage insights delivered through mobile platforms. KE has already laid the groundwork with its digitized network, underground infrastructure, and 24/7 digital engagement channels. Globally, utilities are diversifying — delivering internet through fiber over power lines, offering flexible, time-based supply models, and using AI to manage load and service reliability. KE's model reflects that evolution. Encouragingly, the Power Division and the Special Investment Facilitation Council (SIFC), are actively driving reforms in this direction, and a future built around deregulation, customer choice, and smarter service is no longer a distant concept—it is within reach. And when it comes, K-Electric is ready—with the infrastructure, digital capability, and vision to thrive in a truly competitive, service-oriented power sector.—Concluded Copyright Business Recorder, 2025
Hans India
15-07-2025
- Politics
- Hans India
Coalition govt's objective is inclusive devpt, says MLA
Thuggali (Kurnool district): Pathikonda MLA K E Shyam Kumar asserted that the primary objective of the coalition government was public welfare and inclusive development. Speaking on the third day of the 'Good Governance – First Step' initiative held at Marella village in Tuggali mandal on Monday, he emphasised the government's dedication to delivering transparent administration and welfare schemes at the grassroots level. As part of the programme, the MLA went door-to-door to personally explain the various welfare and development schemes being implemented by the coalition government. He enquired about the problems faced by each household and registered their grievances directly in the 'My TDP' app for swift resolution. He directed the concerned officials to address the complaints without delay. Addressing the public, MLA Shyam Kumar said the coalition government was committed to eradicating poverty and uplifting the underprivileged through enhanced support prices for crops, comprehensive crop insurance, free sand distribution, increased pensions, improved services under Aarogyasri, modernised PHCs, and initiatives like 'Talli Ki Vandanam' for students' mothers. He also highlighted reforms in school infrastructure, empowerment of women through DWCRA, free ration supply, enhanced women's safety, youth skill development, employment generation, drinking water projects, rural road development, and the creation of smart villages. He reiterated the coalition government's determination to accelerate the State's development over the next five years. The event saw active participation from TDP leaders, local cadres, and residents, reflecting the public's positive response to the initiative.
