Karachi residents and industrialists voiced their anger at K-Electric (KE) during a public hearing, accusing the utility of failing to provide reliable electricity to industrial and commercial areas.
The frequent power outages, they said, are disrupting the federal government’s winter relief package and preventing businesses from increasing production and operating efficiently.
The National Electric Power Regulatory Authority (NEPRA) also criticized KE for relying too heavily on the National Transmission and Dispatch Company (NTDC) for its power supply, questioning whether KE should even retain its generation license.
Maqsood Anwar, a NEPRA member from Khyber Pakhtunkhwa (KP), suggested that KE’s generation license should be revoked. “If the company is sourcing 67 percent of its supply from NTDC, does it still need a generation license?” he asked.
He also raised concerns about the high cost of power generation at KE’s plants, where capacity payments reach Rs6-7 per unit.
A KE representative responded that the company still requires a generation license due to agreements with power producers, and canceling it would result in penalties.
They also explained that while NTDC can only provide up to 2,000 MW, KE’s demand reaches 3,400 MW during summer, adding that the company is relying on the most efficient RLNG-based power plants, which cannot be shut down.
Currently, NTDC’s interconnections limit supply to 1,600 MW, but KE expects this to increase to 2,000 MW once critical upgrades are completed by March or April.
The KE official also noted that the cost of power from KE’s plants is Rs6 to Rs7 per unit, much lower than the Rs26 to Rs27 per unit from NTDC.
The hearing also addressed KE’s petition for a Rs4.96 per unit refund under November’s fuel charges adjustment (FCA). If approved, the refund would amount to Rs7.179 billion in relief for consumers in their February 2025 bills.
Tanveer Barry of the Karachi Chamber of Commerce and Industry (KCCI) expressed frustration with KE’s high electricity prices, noting that businesses in Karachi, particularly in industrial areas, are struggling with both high costs and frequent power cuts.
“It’s unfair, and we demand action from Nepra,” he said.
Businesses in Karachi’s Agro Export Processing Zone, which has set up its own feeder, also complained about continued power outages.
“How can we benefit from the incremental package under these conditions?” he questioned.
A Jamaat-e-Islami representative criticized KE’s inefficiencies and the rising subsidies, now reaching Rs170 billion annually, calling for NEPRA to revoke KE’s generation license. “It would be a favour to Karachi’s residents,” the representative argued.
In response to complaints about loadshedding, especially in industrial zones, NEPRA said it would investigate the situation and visit affected areas.
“We will assess the situation and urge KE to address these issues promptly,” said NEPRA member Rafiq Sheikh.
NEPRA also instructed KE to submit a report on loadshedding, which will be made public for transparency.
Sheikh further suggested that power distribution companies (DISCOs) engaging in commercial loadshedding should face daily penalties, adding that such practices must stop. “From now on, we will monitor them daily,” he said.
