Claw-back mechanism: K-Electric asked to return Rs5.4 billion to users

If the decision is implemented then the total relief to the consumers of Karachi will be about Rs5.4 billion


Our Correspondent November 06, 2014

ISLAMABAD:


National Electric Power Regulatory Authority (Nepra) has directed the K-Electric to cut its power tariff by Rs0.42 paisa per unit to provide relief to its consumers. In its decision issued on Wednesday, the power regulator directed K-Electric to cut price as part of a claw-back mechanism in K-Electric’s approved tariff in 2009.


If the decision is implemented then the total relief to the consumers of Karachi will be about Rs5.4 billion. The regulator has directed the company to pass on relief to consumers in three installments during the months of November, December, and January.


Nepra has also announced in its decision that the K-Electric was not empowered to keep or use the said amount of profit.


The K-Electric has obtained a stay order from the Sindh High Court against Nepra’s decision, fearing that it would have negative impact on its financial status in case multibillion rupees from its profit  are passed on to the consumers.


Published in The Express Tribune, November 6th, 2014.

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