KCCI Opposes K-Electric's Rs59bn EOTA Claims at NEPRA Hearing
The Karachi Chamber of Commerce and Industry has formally opposed K-Electric's claims of approximately Rs59 billion under the Energy Obligation True-up Adjustment mechanism for the period FY2017 to FY2023, ahead of a public hearing scheduled at the National Electric Power Regulatory Authority.
KCCI argues that the EOTA claims, if approved by NEPRA, would translate into additional financial burdens on electricity consumers in Karachi, worsening an already strained cost environment for businesses and households. The chamber contends that K-Electric's operational inefficiencies and inadequate performance during the relevant years should not be subsidised through consumer tariffs.
NEPRA's public hearings on disputed tariff adjustments are a critical regulatory mechanism allowing stakeholder input before binding determinations are made. The Rs59 billion figure represents one of the larger contested adjustment claims in K-Electric's regulatory history and its resolution could significantly affect the utility's revenue recovery and consumer tariff structures.
K-Electric maintains that the EOTA claims reflect legitimate cost obligations incurred during the stated period and that regulatory approval is essential for its financial sustainability. The regulator is expected to weigh arguments from both sides before issuing its order.
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