ISLAMABAD - The federal government has paid sub­sidies worth hundreds of billions of ru­pees to K-Electric during the past five years, which will reach to Rs714 bil­lion by June 2024, official documents reveal. The payment for the en­ergy supplied from the Grid is off­set against KEs outstanding subsidy claims from the federal government. As of June 30th, 2023, KE holds an un­paid subsidy claim of over Rs200 bil­lion from the government of Pakistan. This is primarily due to the fact that KE’s established tariff is higher com­pared to the applicable tariff, result­ing in substantial annual subsidies. The current dominance of thermal power generation in KE’s energy mix underscores the urgent need for tran­sition.

Source: Daily Nation November 24, 2023 17:06 UTC