Shanghai Electric to Buy K-Electric

K-Electric

Shanghai Electric Power—SEP, China’s state-owned entity is anticipated to buy K-Electric from the fiscal crisis-hit-Dubai-based—Abraaj Group in the mid of this year.

An agreement that was signed nearly 32months ago in the month of October 2016 at a cost of $1.77billion, would possibly be implemented in a few months’ time after the government recently accepted a major demand of the Chinese company for revising the power tariff upwards for the end-consumers by Rs.2.15 to Rs.3.63 per unit.

Ikram Sehgal—Chairman K-Electric said that the revised tariff is a significant milestone in executing the business deal.

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He added that naturally, this should be increasing the speed of transactions which have been pending for nearly 3 years now. He added that in case of no hurdles the Chinese company would take over K-Electric by September-October 2019.

He further said that other issues were trivial which includes that how would the debt of K-Electric be removed from the books.

It was learnt that K-Electric has increased the tariff by Rs.2.15 per unit to Rs.17.60 for the consumers using 301 to 700 units of electricity monthly. The tariff has been revised by Rs.3.37 per unit to Rs.20.70 per unit for more than 700 units monthly.

As per a statement released by K-Electric no surge has been made in the charges for the residential consumers having consumption up to 300 units.

It also mentioned that bank charges and meter rent would also not be charged from the consumers.

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