Stakeholders opposed the renewal of K-Electric’s power distribution and supplier license as the company sought it before the National Electric Power Regulatory Authority (Nepra).
Nepra had previously provisionally renewed KE’s license for six months with a condition against exclusivity. The original 20-year license, granted on July 21, 2003, had expired on July 20, 2023.
Stakeholders, including All-City Tajir Ittehad Association, Karachi Chamber of Commerce and Industries, and others, expressed opposition to granting the license solely to KE.
They raised concerns about KE’s inefficiency causing citizen suffering, unfulfilled commitments, and employee retrenchment.
The Lasbela Industrial Estates Development Authority urged Nepra to remove territorial limits from KE’s license due to ongoing litigation.
Various groups, including Pakistan Civic Society and individual industrialists, opposed the license extension.
However, the Energy Department Balochistan, Petroleum Division, and some industrialists supported renewal.
During the public hearing, Nepra addressed various issues, including KE’s eligibility, performance, privatization goals, environmental impact, and cybersecurity.
KCCI suggested having more than one power distribution entity for Karachi, while KE expressed its desire for a 20-year license covering its service territory.
KE highlighted a Rs544 billion investment to enhance power supply, adding 1,957 MW of generation capacity and improving fleet efficiency. The company discussed commissioning a 900 MW RLNG plant and doubling transmission and distribution system capacity since privatization.
In discussions on tariffs, participants focused on benefits for Karachi industries. KE highlighted IT and tech-based interventions, including GIS and 60,000 smart meters, to enhance service delivery.
Aamir Ghaziani, KE’s CFO, affirmed a commitment to quality services, citing an upcoming Rs484 billion investment plan and the addition of over 1,200 MW of renewable energy.