In a move that has sent shockwaves across the country’s power sector, the National Electric Power Regulatory Authority (NEPRA) has granted K-Electric a jaw-dropping Rs50 billion write-off—a concession so colossal that only K-Electric could pull it off in Pakistan.
Yes, you read that right. In what critics are calling an “extraordinary favour”, NEPRA has allowed K-Electric to write off Rs50.013 billion out of a whopping Rs76 billion it had claimed for the Multi-Year Tariff (MYT) control period spanning from FY2017 to FY2023. The remaining Rs26 billion, linked mostly to an older MYT cycle, was dismissed due to lack of justification.
“Only K-Electric can get such decision in Pakistan,” lamented a Karachi-based energy expert, reacting to what many see as preferential treatment.
According to NEPRA’s official order, auditors confirmed that KE had made “all possible efforts” to recover the dues—but in vain. These dues, KE claims, stem from bills unpaid by chronic defaulters during the MYT period. Under the MYT mechanism, the utility is allowed to recover such irrecoverable costs, which are distinct from the monthly bills charged under the uniform national tariff policy.
However, NEPRA wasn’t entirely lenient. It disallowed Rs24.3 billion worth of write-offs tied to the earlier MYT period ending June 2016, declaring it a clear duplication of cost. “There is no justification to allow write-offs of Rs24,337 million pertaining to the previous MYT period,” the regulator said.
Still, what stands out is the magnitude of the approved amount and the timing of the relief, as K-Electric aggressively prepares for the next tariff phase for FY2024–FY2030.
Stakeholders from political parties and Karachi’s business community raised serious alarms during public hearings. A Jamaat-e-Islami (JI) representative accused KE of writing off “bogus bills,” while business groups warned that such write-offs could encourage inefficiency and burden honest consumers in the long run.
As part of the regulatory conditions, KE has been directed to disclose any recovered amounts from these write-offs in future quarterly adjustments. NEPRA also mandated the submission of annual auditor certificates confirming any such recoveries, ensuring that any windfall is passed back to consumers.
Adding another twist, NEPRA announced a Rs2.98 per unit refund for KE consumers in June bills, thanks to a negative Fuel Cost Adjustment (FCA) for electricity consumed in March.
While other power distribution companies continue to battle stringent regulations and minimal concessions, K-Electric’s privileged position as Pakistan’s only vertically integrated private utility continues to draw envy—and scrutiny.
The verdict is clear: in Pakistan’s power sector, only K-Electric enjoys the kind of regulatory miracles that turn Rs76 billion claims into Rs50 billion payouts—with just the stroke of a pen.