A.    Background

1.   This refers to Important PGECs (in trail, in blue, in italic and after double line) 

(a) 146 of 6.12.24 about KE Huge Write-off Claims Hearing now on 10.12.24 - Urgent Action

(b) 140 of 21.11.24 about Huge 7 years' Write-Off - KE planned charging you - Action by 28.11.24 

(c) 129 of 18.10.24 about Five +18 Power Companies Agreement Termination & Jamaat, etc efforts for U

2.   We also refer to several other PGECs including

(a) 130 of 26.10.24 about KE September FCA / FCV hearing on 31.10.24

(b) 118 of 30.8.24 about KE FCA Bomb of Rs 37.75 for May-June 2024 per NEPRA order in upcoming bill and Jamaat –e-Islami

B.   Updated Commentary

1.   Further to KQU 3140 dated 11.12.24, being an important matter, we would inform you about NEPRA Conducts Public Hearing on KE’s Write-Off Claims (Attachment 148.1)  in the ensuing paragraph, with emphasis in bold & Underline for quick reading.

2.   As per KE, NEPRA concluded its hearing on annual claims between FY17 and FY23 of unrecoverable dues against chronic defaulters filed by KE. Pertinent to note that KE is allowed to claim these costs in the Multi-Year Tariff awarded to the utility, which is independent of the rates of electricity charged to customers in monthly bills under the uniform tariff policy.

3.   The PKR 68 billion amount discussed in the hearing has accumulated over a 7-year period which is critical to the company’s continued financial sustainability. These amounts have been unrecoverable despite best efforts against defaulters including multiple disconnections, engagement with specialized recovery agencies, and area specific initiatives etc. The submissions to NEPRA have also undergone strict internal scrutiny as well as external audits by well-accredited and renowned audit firm as required by the NEPRA Authority.

4.   Speaking on the occasion, Spokesperson KE stated, “Unlike XWDISCOs, as a private utility KE has no contribution to the national circular debt, a fact that has been recognized by the World Bank and renowned global institutions. Disallowing legitimate claims will therefore directly impact KE’s cashflows, affecting our capacity to fulfill plans to drive infrastructural upgrades for enhanced power supply to Karachi.” . KE continues to actively engage with the regulator on this matter.

5.   About KE is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan supplying electricity to Karachi and its adjoining areas. The majority shares (66.4%) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a shareholder (24.36%) in the Company while the remaining are listed as free float shares.

C.   Videos Against Write off Claim & Other issues in Favour of Your Entity & U - hence Muttply to Electiry Bills Burden

Rs 68 Billion KE write off claim loading to Good Payer is objected by Jamaat e Islami Karachi Ameer Munim Jafri Sb - Share with Others to avoid Loading in your bills (Attachment 148.2)

For an interesting video by a Bold Lady about charging Write Off to good payers, please click here (Attachment CS6048.3).

D.   Hearing against Huge write off claim

1.   As per reliable sources, following has been found

Hearing was attended by Mr Imran from Jamaat- e-Islami who objected to charding Claim from Good Payers. No Other Political Parties Representative attended the Hearing. 

Moreover KCCI Representative, etc. 

The hearing continued for more than expected hours

Due to prejudice NEPRA, Govt favour towards KE, all the above efforts gone in waste and more Public Pressure is need to Support Jamaat e Islami. KCCI Members should be more active.

2. No Hearing details and Decision as to above are present on the NEPRA web till a few minutes before release of this PGEC though hearing was conducted 10.12.24 (6 days elapsed) but found from KE Web on the hearing date viz 10.12.24.

E.   Write off details, as shared earlier

For Write-Off Claims of K-Electric (click on Attachment 140 - which are relating to the following years and separate link therein separately for 100s of pages in aggregate -also attended with PGEC 140 of 6.12.24).

1. April to June 2017-18,

2. April to June 2019,

3. April to June 2020,

4. April to June 2021,

5. April to June 2022,

6. April to June 2023,

7. Revised June 2017 and June 2018,

8. Revised April to June 2022 and

9. Revised April to June 2023

F.   Multiplication

1.  Although all the Commentaries are to the extent of the Subscribed IDs only, however, your Goodself is allowed to share this PGEC for the Noble Cause to Impart Knowledge, so as to save Electricity usage by your Entity, Home, Masjids, etc leading to less Units usage bill and all Professionals & Masses may make issue as to THREE matters are being charged to Good Payers viz (a) Capacity Charges, etc  (b) Why Line Losses (including for Govt, KE & XWAPDA DISISCOs employees and theft) (c) Why write off is planned to be charged to good payers and Bribery as to increase in Tariff (d) A huge counter effect of 4 Federal Sales Tax types.

2.  If Public support continues with Invite your friends to be a part of this great struggle based on regular increase in Jamaat e Islami membership form being filled, then 5 announced and 18 IPPs will announce Termination Agreement and prices will be reduced. Have your Goodself, family, friends filled the Online Form?  It would be in the Interest of Justice and Public interest at Large that now DISCOS like KE & XWAPDA should reduce prices, if we keep pressure on them and Govt.

3.  We expect that you would support and be a Member of the JI, whose workers are taking risks and working in your Favour; and Against Unreasonable Prices due to Capacity, Line Losses (including theft) Bad Details Write Offs, etc; and will atleast multiply. Otherwise, be ready for constant increases in Electricity bills with different methods, inspite of constant decreases in International Fuel Prices, etc.

G.   Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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