Accusations: K-Electric denies overcharging allegation

Issues lengthy statement in response to NEPRA’s show cause.

KARACHI: K-Electric, formerly Karachi Electric Supply Company, has denied allegations that its management authorised excessive billing from customers who were accused of stealing electricity. 

The only privately-run power utility issued a lengthy statement on Wednesday in response to a show cause notice from National Electric Power Regulatory Authority (Nepra), which wants to impose a Rs100 million fine on the company.

K-Electric said that the show cause notice stems from an email, which was circulated by one of its officials without authorisation from senior management. One isolated incident in a company that covers a large distribution territory is against ethics, it said.

“The notice wrongly claimed that KE had been indulging in bogus billing and the utility withheld material facts on the directions of senior management,” the statement said.

“Alleged incident of overbilling never took place as it was unearthed and stopped by KE at a very initial stage.”

Sharing details, it said the incident involved an employee from one out of four regions of KE, who issued unauthorised emails to his colleagues and superiors.

However, through pre-emptive measures, KE management prevented any excessive billing.

KE clarified that it did not authorise ex-employee Shoaib Siddiqui to take alleged action, had suspended him and conducted an enquiry to determine the facts. In turn, Siddiqui tendered his resignation.

“KE was consulting its legal advisers with regard to the preposterous claims and exorbitant fine of up to Rs100 million.”

The company has already taken Nepra to the Sindh High Court, which on March 26, 2014, stopped the regulator from making any final orders in the matter.

In the suit, KE alleged that Nepra had breached its own rules of procedure and acted without lawful justification and in reliance on unsubstantiated conjecture, rumour and speculation which was not permitted under the provisions of the Nepra Act and its Fines Rules 2002.

KE said the Nepra’s move comes when it was facing  liquidity crunch due to non-payment of receivables by the government amounting to over Rs80 billion.

Published in The Express Tribune, April 3^rd, 2014.

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