ISLAMABAD: A group of prominent Saudi and Kuwaiti investors, including K-Electric Ltd, joined top government officials on Thursday in lobbying with top government officials to end the impasse of hundreds of billions of rupees of unresolved claims and counter claims as the Karachi-based power utility It was a busy day. Demanded an unprecedented increase of Rs 11.34 per unit in its monthly fuel cost adjustment.
The non-settlement of financial claims on K-Electric by government-owned electricity and fuel suppliers and vice versa is hindering the transfer of the troubled private power utility to China’s Shanghai Electric, an agreement with K-Electric’s majority shareholders. has reached. To buy more than 66 percent of its shares in 2016 for $1.77 billion. The KE delegation met Prime Minister Shehbaz Sharif and his ministers besides the chairman of the power sector regulator and other influential stakeholders.
Informed sources said Prime Minister Sharif asked the energy sector task force led by former Prime Minister Shahid Khaqan Abbasi to ensure resolution of all outstanding issues related to K-Electric within three months. The company has more than 400 billion rupees in payments to the Central Power Purchasing Agency and more than 200 billion rupees to Sui Southern Gas Co Ltd and has similar claims of receipts against federal and provincial government entities.
Separately, it asked the regulator – the National Electric Power Regulatory Authority (NEPRA) – to allow an additional fuel cost of Rs 11.34 per unit under monthly fuel cost adjustment (FCA) for electricity sold in May In order to generate around 22.65bn in Rs. Coming month.
In a petition, the power utility said that it charged a reference fuel cost rate of Rs 16.88 per unit in May, which rose to Rs 28.22 per unit and resulted in a difference of Rs 11.34 per unit being nearly 143 per cent higher. Happened. 52 pcs on account of own fuel cost and power purchase cost including national grid.
Furnace oil prices rose 38 per cent in May from March, while RLNG prices rose 50 per cent.
Nepra has called a public hearing on July 4 to examine whether K-Electric’s request for fuel cost variation was justified and whether it purchased electricity from the national grid, its own power plants and other external sources. Time had complied with the Economic Merit Order. Once approved, K-Electric will be able to collect Rs 22.65 billion from consumers through its monthly bill for August in FCA’s account.
Power Minister Khurram Dastagir Khan expressed his concern over the modernization and digitization of K-Electric and stressed that the company needs to focus on customer convenience and service delivery, an official statement said.
K-Electric said a delegation of its majority shareholders representing Saudi Arabia’s Alzomah Holding Company, Kuwait’s National Industries Group (NIG) and Infrastructure Growth and Capital Fund (IGCF) held a meeting with Prime Minister Sharif on Thursday .
The delegation briefed the Prime Minister about the achievements of the utility in the last 17 years. “We chose to invest in the power sector – which is the backbone of any economy – of Karachi which holds a special place as Pakistan’s financial and industrial hub,” the statement quoted Mr. Aljomaih as saying.
Published in Dawn, June 24, 2022