THIS is with reference to the report ‘KE comes under fire on Rs76bn write-offs’ (April 18), about claims against unrecover-able dues from consumers since 2017, with some groups and individuals warning that the recovery drive by K-Electric (KE) through tariff hikes would be resisted by all constitutional means, and calling for a detailed forensic audit.
A political party representative at the hearing pointed out that KE’s claims have been built over ‘fake, bogus and fraudulent billing’. He even produced a few recent KE bills running into millions of rupees against a sanctioned load capacity of 1-2kW.
Initially, the erstwhile Karachi Electric Supply Corporation (KESC) used to take care of generation, transmission and distribution of electricity across Karachi. The induction of private owners did not bring in improvement in terms of power generation and transmission services.
The new management, instead, focussed on expensive KESC properties in various parts of the industrial and financial hub, and on the replacement of good power conductor copper wires by cheaper ones, which, in due course, were unable to bear the heavy load and led to frequent power breakdowns.
Other than the KE-inflicted wounds, the consumers are burdened by the task of sustaining the National Electric Power Regulatory Authority (Nepra). The total yearly amount spent on the top five Nepra officials alone surpasses Rs186 million, which is an exorbitant figure in a country where the minimum monthly wage is around Rs37,000.
The remuneration paid to Nepra’s broader staff also significantly exceeds standard public-sector salaries in the country. All such costs are being passed on to the people. Any cost-benefit study from any independent and competent forum will certainly raise a lot of serious questions about Nepra and its working.
KE management is claiming the recovery of defaulted amounts from its consumers who are already paying excessive amounts due to enhanced tariffs, multiple taxes, fuel adjustment charges, late payment charges, peak-hour load charges, etc.
This is totally unjustified, especially after seven years, for section 64A of the Limitation Act prohibits recoveries of any sort, including bad debts, beyond three years.
Instead of accepting such KE claims by burdening the consumers, the utility company should be instructed to enhance the capacity of its recovery system in line with international standard operating procedures. Information about defaulters and any action to recover the amount should also be shared with the public.
Masood Wazir
Karachi
Published in Dawn, April 29th, 2025