In a public hearing held by the National Electric Power Regulatory Authority (Nepra), K-Electric (KE) representatives asserted that the company has successfully achieved major targets set post-privatization, including a substantial reduction in power outages, minimization of losses, and an investment of approximately Rs550 billion for system improvement over the past 18 years.
During the hearing, KE emphasized its strides in reducing power outages, highlighting that only 6.6% of its jurisdiction area was exempt from load-shedding in 2005. In a remarkable turnaround, the company now claims that 71% of Karachi is free from power outages, showcasing a significant improvement in the reliability of power supply.
The public hearing was centered around a petition filed by KE, seeking a non-exclusive distribution and supplier license from Nepra for the next two decades, covering its service territories, which include Karachi, Dhabeji, Gharo in Sindh, and Hub, Bela, and Vinder regions in Balochistan.
KE’s senior leadership, including Chief Financial Officer Aamir Ghaziani, Chief Distribution Officer Fawad Gilani, and Chief Marketing and Communications Officer Sadia Dada, addressed questions posed by Nepra and various stakeholders present at the hearing.
Discussing the outcomes of privatization, KE revealed a capital expenditure of approximately Rs544 billion ($4.4 billion) dedicated to enhancing power supply in Karachi. This investment resulted in the addition of 1,957 megawatts of generation capacity, elevating fleet efficiency from 30% in 2005 to 42% in 2023. Additionally, the recent commissioning of a 900MW re-gasified liquefied natural gas (RLNG) power plant is expected to further boost fleet efficiency to 49%.
The discussion also revolved around tariffs, with participants expressing both satisfaction with KE’s performance and seeking tariff benefits for Karachi-based industries. KE emphasized its commitment to customer service, highlighting ongoing investments in technology, including the use of Geographical Information System (GIS) and the deployment of 60,000 smart meters.
While some participants voiced concerns over the increase in consumer tariffs and its impact on affordability, KE CFO Aamir Ghaziani assured continued commitment to providing high-quality services. Interveners, although supportive of KE’s license renewal, urged a reduction in power generation costs to alleviate the burden on consumers.
