K-Electric (KE) has rebutted a news item which quoted some misinformed sources claiming that KE has been charging "Fuel Adjustment Charges" from its consumers which have led to KE turning profitable. KE's profitability has not increased due to unfair means and neither does the company undergo unfair practices, as the company is regularly audited by well-renowned firms.
According to KE spokesman, "Profitability is directly related to the reduction in losses, which KE has accomplished quite well. Our losses before the Abraaj-led take-over, were standing at a haunting figure of more than 40 percent, we curtailed them through timely investment and strategic planning. These losses are below 26 percent now whereas our fleet efficiency has improved by 21 percent over the last five years".
As far as bank charges are concerned, KE has repeatedly rebutted such false claims, as made in the report. Bank charges are collected by KE but these charges are forwarded to the bank. These charges are also shown separately on KE bills unlike other Discos that keep these charges hidden. On the other hand further claims by the source stated that KE sends excessive bills to the consumers, which is again a flawed perception. A security deposit however takes place when after a survey it is decided that the connected load of a particular place has surpassed the sanctioned load. This security deposit is merely a deposit which belongs to the consumer and is returned to the consumer when the meter is dismantled. The security deposit amount is clearly visible on the consumer's bill as well.-PR