K-Electric's financial statements delayed due to pending tariff determination

October 16, 2023 (MLN): K-Electric Limited (PSX: KEL) is engaged with National Electric Power Regulatory Authority (NEPRA) for a separate tariff determination, and due to the absence of approved tariff determinations, the financial statements for the quarter ending September 30, 2023, cannot be finalized, as revealed in the company’s filing on PSX today.

The company is a regulated entity under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act) and prepares its financial statements in accordance with the tariff determined by the NEPRA.

To note, KEL was awarded an integrated Multi-Year Tariff (MYT) by NEPRA for a control period of 7 years that expired in June 2023.

“Keeping in view the changing scenario of the power sector of Pakistan, the company is engaged with NEPRA for separate tariff determination for each business segment i.e., generation, transmission, distribution, and supply segments, for the period subsequent to June 2023,” the notice reads.

Additionally, the company’s generation petition for the remaining life of Generation plants and investment plan and performance KPIs for the Transmission and Distribution segment for the next control period are in advanced stages of finalization by NEPRA which will be followed with tariff determinations for transmission, distribution and supply segments.

It may further be noted that KEL has already apprised both of its apex regulators, that is, NEPRA and the Securities and Exchange Commission of Pakistan (SECP) on the subject matter.

Moreover, the company remains engaged with NEPRA for the earliest determination.

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