Karachi, November 18, 2024 – K-Electric (KE) has faced a setback in transmitting its annual financial statements and holding its Annual General Meeting (AGM) due to the pending determination of its Multi-Year Tariff (MYT) by the National Electric Power Regulatory Authority (NEPRA).
On Monday, KE responded to a notice issued by the Pakistan Stock Exchange (PSX) regarding the non-transmission of its financial statements for the year ended June 30, 2024, and the delay in holding its AGM. The PSX had issued a notice on November 12, 2024, following KE’s earlier announcement of an extension granted by the Securities and Exchange Commission of Pakistan (SECP) to hold the AGM by November 27, 2024. The PSX noted that despite the extension, KE had failed to publish the AGM notice or transmit its audited annual financial statements within the stipulated period, breaching statutory and regulatory requirements.
In its response, KE explained that it had been unable to prepare and transmit its quarterly financial statements for FY2024 due to the ongoing delay in the determination of the MYT by NEPRA. This, the company said, had also prevented it from preparing its annual financial statements for FY2024, as they could not be audited without final tariff determinations.
KE emphasized that it had been persistently following up on the matter. A significant step was taken recently when NEPRA approved the tariff for KE’s generation segment on October 22, 2024. This development was disclosed by the company to the public, investors, and regulators. However, KE clarified that it had filed a review motion on November 1, 2024, regarding the tariff for the generation segment. The tariff determinations for KE’s transmission, distribution, and supply segments, however, remain pending, further delaying the preparation of its financial reports.
KE assured that once the necessary tariff determinations are finalized, it will promptly prepare and circulate the required quarterly and annual financial statements in compliance with applicable laws and regulations.
The company also stated that it had approached the SECP to request an additional extension, given that the delay in the MYT determination is beyond its control. KE is hopeful that the situation will be resolved in the near future, allowing it to meet its regulatory obligations.
