ISLAMABAD: K-Electric has requested nearly Rs59 billion in end-of-term (EOT) and tax adjustments from the National Electric Power Regulatory Authority (Nepra), covering six years under its 2017-23 multi-year tariff (MYT), the private utility said on Monday.
Nepra will hold a public hearing on April 22 to examine the claims, which span exchange rate impacts, working capital, investments and tax pass-through. The Rs43.626 billion EOT adjustment includes Rs11.056 billion for exchange rate effects on allowed returns, Rs23.432 billion for working capital adjustments and Rs10.449 billion for actual working capital needs, offset by Rs1.311 billion for unspent investments.
A separate Rs15.329 billion claim covers tax pass-through and other adjustments, including Rs7.496 billion for 2023 taxes, Rs3.006 billion for 2022 minimum tax liabilities, Rs461 million in Tax/WPPF pass-through, Rs261 million for pending power purchase adjustments and Rs4.105 billion in minimum tax liabilities for 2018-21.
KE has also reserved the right to claim further costs or revisions from pending tax assessments during the MYT period, subject to Nepra verification. Nepra will review four key issues at the hearing: the validity of the requested adjustments, the justification of segment-wise investment claims, the legitimacy of tax pass-through claims for 2017-23 and any other matters arising during the proceedings.
