K-Electric claims its receivables surge to Rs 158.8bn
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KARACHI: The outstanding receivables due to K-Electric (KE) have ballooned to a massive Rs 158.8 billion on account of outstanding payments from various Federal and Provincial public sector entities including Karachi Water and Sewerage Board (KWSB) which owes Rs 31.9 bn and miscellaneous others.
In stark contrast to commonly held perception, the power utility would like to clarify that KE’s receivables (Rs 158.8 billion) are nearly two times its payables, which total Rs 82.2 bn. Of this payable amount, Rs 13.7 bn are the actual principal payments due to Sui Southern Gas Company (SSGC) against gas supply (out of which Rs 4.67 bn is to be adjusted against refundable GIDC), while the remaining dues relate to National Transmission and Distribution Company (NTDC) and other federal and provincial entities.
In response to a question about the difference in value of outstanding payments being claimed by SSGC, KE Spokesperson has clarified that, “KE has not defaulted on its current payments to SSGC since 2012, and during this period, KE has paid over Rs 277 bn to SSGC which includes all the current running bills and payments for arrears to the tune of Rs 13.55 bn.”
“The current outstanding principal balance of SSGC is around Rs 13.7 bn (out of which Rs 4.67 bn is adjustable against refundable GIDC), whereas the remaining amount as claimed by SSGC appears to be grossly inflated through the inclusion of markup or interest which has been challenged in the court of law. Considering that this matter is still subjudice and pending judgement, it is highly inappropriate that grossly exaggerated allegations have been made against KE. Until the culmination of the litigation process, through a judgment on the merits, deeming this disputed amount as dues would be premature and contrary to the facts and law.”
The power utility reiterates that the financial settlements between KE and public sector entities must be treated in a fair and uniform manner and the yardstick applied on KE’s payables, should also apply to KE’s receivables from provincial, federal and other public sector entities and all settlements whether federal or provincial should be tabled together under one umbrella.
K-Electric is in constant liaison with concerned stakeholders for a fair and equitable resolution of this matter.
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