PM Instructs Power Division to Propose Comprehensive Solution for Payment Settlement Between KE and Government Entities
Tariq Ali 
Islamabad: Prime Minister Shehbaz Sharif has instructed the Power Division to develop a holistic plan to address the longstanding receivables and payments between K-Electric (KE) and various government entities, sources informed Business Recorder.
During a recent meeting that covered several power sector issues, the Prime Minister emphasized collaboration between the Power Division and Cabinet Division, which oversees NEPRA, to expedite tariff approvals and settlement of KE’s claims. NEPRA has scheduled hearings on KE’s tariffs.
KE has issued a stern warning to the Sindh government over outstanding dues.
Regarding shareholding matters, the Prime Minister directed the Securities and Exchanges Commission (SECP) to examine the legality of these issues and present a report at the SIFC forum.
The meeting also resolved to conduct competitive bidding for Category-III wind Letter of Interest (LoI) holders to procure 300 MW for KE. Draft RFP documents were prepared by PPIB and sent to KE on March 15, 2024, with RFP/EPA approval expected by end of June 2024 from PPIB Board and by end of August 2024 from NEPRA.
At the meeting, NEPRA Chairman stated that NEPRA is evaluating KE’s write-off claims and aims to resolve the issue swiftly. He noted that other DISCOs also face recovery losses, but these are absorbed into the circular debt or passed on to consumers through surcharges.
KE’s CEO highlighted that the company’s Multi-Year Tariff (MYT) expired on June 30, 2023, and that KE has filed new tariff petitions with NEPRA. The NEPRA Chairman assured expedited processing for the new tariff period.
Secretary Power, Rashid Langrial, detailed KE’s Indicative Generation Plan (IGP) as per the Prime Minister’s directives. The plan includes converting existing units to 100 percent Thar Coal and initiating new Thar Coal projects in collaboration with PPIB.
Discussions also covered the government’s representation on KE’s Board of Directors. Secretary Power requested a change in the Government of Pakistan board members in KE’s BoDs, noting that the SHC stay order does not apply to these members.
Key decisions from the meeting included:
- NEPRA to resolve KE’s issues, including write-off claims and post-June 2023 tariff determination.
- Approval for converting JPCL Unit-I to 100 percent Thar Coal and power off-take by KE.
- KE to assist in changing Government of Pakistan board members on its BoDs.
