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Karachi, K-Electric Limited, a key player in Pakistan’s energy sector, has not transmitted its quarterly financial statements for the periods ending 30 September 2023 and 31 December 2023. The failure to meet statutory and regulatory requirements was highlighted in a letter from the Pakistan Stock Exchange (PSX), numbered PSX/Gen-371, dated 11 March 2024, which pointed towards the company’s obligation to provide these statements within a specified timeframe.
In responses previously announced through PUCARS on 16 October 2023 and 28 February 2024, K-Electric reiterated its position as a regulated entity under the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997. The company prepares its financial statements according to tariffs set by the National Electric Power Regulatory Authority (NEPRA). However, K-Electric’s integrated Multi-Year Tariff (MYT), which covered a control period of seven years, expired in June 2023. Discussions with NEPRA for a new tariff for the period post-June 2023 are ongoing, but determinations for transmission, distribution, and supply segments remain incomplete.
The company conveyed to both NEPRA and the Securities and Exchange Commission of Pakistan (SECP) its challenges in finalizing the financial statements for the quarters ended 30 September 2023 and 31 December 2023 due to the absence of approved tariff determinations. K-Electric emphasized its commitment to transparency and regulatory compliance, stating it has no intention of deliberately contravening any legal or regulatory frameworks.
K-Electric also addressed the Pakistan Stock Exchange’s inquiries, noting that the SECP has clarified that the Companies Act of 2017 does not permit exemptions from the requirement to circulate or transmit quarterly financial statements. The company remains in dialogue with NEPRA to hasten the MYT award process for the next control period, starting from the current financial year. K-Electric assures that it will prepare and disseminate its annual and quarterly financial statements as soon as the new MYT is granted.
K-Electric trusts that the Pakistan Stock Exchange Limited will understand the unique circumstances the company is navigating and will handle the situation with due consideration.