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NEPRA Hears K-Electric Petition for Distribution, Supplier License

National Electric Power Regulatory Authority (NEPRA) today heard K-Electric’s petition for the grant of a non-exclusive distribution license and supplier license for the next 20 years to its service territory including Karachi, Dhabeji, Gharo in Sindh and Balochistan’s Hub, Bela, and Vinder regions.

The hearing was attended by various stakeholders including Karachi’s industries and the general public. KE’s senior leadership including Chief Financial Officer Aamir Ghaziani, Chief Distribution Officer Fawad Gilani, and Chief Marketing and Communications Officer Sadia Dada, represented the company to address the questions framed by the regulator.

Speaking about the expectations and results of privatization, KE shared that a capital expenditure of around Rs. 544 billion ($4.4 Billion) has been made towards improving the power supply to Karachi. This has resulted in an addition of 1,957 MW of generation capacity and 12 percentage points improvement in fleet efficiency from 30 percent in 2005 to 42 percent in 2023.

Since the most efficient 900 MW RLNG plant was commissioned in the last quarter of FY 2023, the fleet efficiency would increase to 49 percent when the said power plant would operate for the entire year. KE leadership shared that since privatization, transmission and distribution system capacity has doubled, while line losses have been reduced by half.

Most of the conversation revolved around the tariff and seeking tariff benefits for industries based in Karachi. Other participants expressed satisfaction with the network and associated services while others suggested improved strategies.

In response to questions about improving the reliability of services, the company highlighted that it has invested in IT and tech-based interventions to modernize the infrastructure and improve service delivery. These include pioneering initiatives such as the use of a Geographical Information System (GIS) and the deployment of 60,000 smart meters enabling greater visibility over power consumption trends.

Aamir Ghaziani, KE’s CFO stated, “We remain committed to providing customers with the best quality of services. Our Rs. 484 billion upcoming investment plan and proposed addition of over 1,200 MW renewable energy are indicative of this”.

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