2 weeks Ago
The National Electric Power Regulatory Authority (NEPRA) recently held a public hearing regarding K-Electric’s (KE) claims for an additional write-off of Rs8.13 billion. A top auditing firm confirmed that the write-off claims complied with international standards and had full independence from KE management.
However, NEPRA Chairman raised concerns about the independence of the auditors. During the hearing, auditors from AF Ferguson, part of the PwC network, assured participants that they followed rigorous procedures. They conducted on-ground verification, customer surveys, and other assessments to ensure thoroughness.
Despite these claims, NEPRA members questioned how to ensure the auditing process was completely independent. Former Prime Minister Shahid Khaqan Abbasi emphasized the importance of a fair decision on KE’s write-offs to facilitate the privatization of power distribution companies. He highlighted that unresolved write-offs could harm KE’s financial position and affect investor perceptions.
Timely regulatory decisions are crucial for the utility’s stability and broader power sector credibility. Various stakeholders also voiced concerns during the hearing. Some questioned why Karachi consumers are bearing the burden of surcharges linked to circular debt, for which KE is not responsible.
The session concluded with NEPRA stating that the claims would undergo further examination, with a final determination expected soon. This outcome will play a key role in shaping future privatization and tariff reforms in Pakistan’s power sector..
