KE’s Rs264b gross receivables affecting transaction process with SEP

ISLAMABAD   -   K-Electric gross receivable of Rs 264 billion and unresolved markup issue affecting the company transaction process with Shinagai Electric Power (SEP) and may further affect Karachi’s energy securityBoth delayed payments and protracted decision-making by government entities affect the financial liquidity of power sector companies, deter much-needed investment and damage operational sustainability of organizations, official sources told The Nation yesterday. The incessantly growing, unresolved markup issues related to KE’s payable to SSGC and NTDC/CPPA and KE receivables from government of Pakistan and other government entities including KWSB continue to remain a serious impediment to the Shanghai Electric (SEP) acquisition of KE. The power shortfall and load-management experienced by Karachi’ites this year was a spillover effect of delaying the transaction amongst other regulatory decisions, the official alleged.

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