ISLAMABAD: K-Electric will pay the Rs24.5 billion collected from its consumers in 12 months to the Central Power Purchase Agency (CPPA-G), a Power Division official said.

The power utility consumers got cheaper electricity from July 2019 to September 2020 as they did not pay the quarterly tariff adjustments (QTAs) during the said time. Therefore, the Economic Coordination Committee (ECC) allowed the utility company to recover Rs24.5 billion from its consumers in 12 months.

According to the official, the QTAs were pending due to various proceedings under adjudication/ decision at multiple forums. Due to this pendency, the impact of such adjustments was not passed on to the consumers.

In its summary, the Power Division also recommended to the ECC the approval of the remaining amount of Rs250.7 billion as a tariff differential subsidy.

The officials highlighted that since FY2018-19, K-Electric had stopped paying CPPA-G against power purchase invoices citing clause 9.3(A) of the Power Purchase Agreement signed between the KE and CPPA-G. This agreement expired in 2015. However, power continued to be supplied to the KE after the expiry of the term in 2015. KE's outstanding payable towards CPPA-G has reached Rs448 billion as of September 2022 (including markup), further adding around Rs16 billion monthly.

K-Electric believes that it would pay NTDC (CPPA) payment against the relevant invoice for each billing period equal to the total value of the invoice, including Sales Tax minus the amount of Tariff Differential Subsidy.

Published in The Daily National Courier, June, 22 2023

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