Saturday, June 28, 2025

NEPRA takes action against K-Electric over load-shedding

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has issued a show-cause notice to K-Electric (KE) for not following its instructions regarding forced load-shedding.

Nepra highlighted that KE was carrying out power cuts based on aggregate technical and commercial (AT&C) losses, a move that goes against the Nepra Act and the 2005 Performance Standards (Distribution) Rules.

As per Nepra’s regulations, power distribution companies (DISCOs) must have prepared plans to cut up to 30% of their total connected load when instructed by the National Transmission and Despatch Company (NTDC).

These loads must be grouped into separately switchable blocks that can be turned off when needed, and such plans must be shared with NTDC in advance.

The authority added that NTDC, whenever possible, should notify DISCOs in advance about any upcoming load-shedding to help manage grid frequency and voltage in line with the Grid Code.

It is also responsible for giving clear instructions on how much load to shed and when, based on pre-approved plans.

Earlier this year, on January 8, 2025, Nepra had already asked KE to explain its non-compliance under specific sections of the Nepra (Fine) Regulations, 2021.

The regulator noted that KE was switching off entire feeders in areas with high losses, even when many residents on those lines had no fault and paid their bills on time. “Nepra considers this unfair to compliant consumers.”

Due to this practice, Nepra had previously concluded legal action and fined KE Rs50 million.

“Nepra continues to stress that load-shedding should only be carried out at the Pole Mounted Transformer (PMT) level and only when absolutely necessary, such as in the case of generation shortages or transmission constraints, and only under instructions from system operators.”

KE had earlier launched a project in 2021 to install Advanced Metering Infrastructure (AMI) and Automated Meter Reading (AMR) systems at distribution transformers, costing Rs600 million.

The aim was to better track electricity theft and non-payment, and to manage power distribution remotely. This project was completed by the end of 2021, with test runs lasting through June 2022.

However, upon reviewing records and KE’s own submissions, Nepra found that while the company has gained financially from the AMI/AMR system, it has not used it to ease the burden on consumers by targeting load-shedding only at the PMT level, something the system is capable of doing.

Residents of Karachi also raised strong complaints about unfair and prolonged power outages during public hearings on fuel cost adjustments, adding weight to Nepra’s concerns.

Responding to the regulator’s action, a KE spokesperson said, “KE is currently reviewing the show-cause notice received from Nepra. After a comprehensive review, we will submit our response in line with the timeframe set by the authority.”