ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) approved a Rs4.98 per unit refund for K-Electric (KE) consumers under November’s fuel cost adjustment (FCA), applicable in February bills. However, the regulator raised serious concerns over KE’s sustainability due to its dependence on the national grid for over 67% of its power supply.
During a public hearing, Nepra member Maqsood Anwar questioned the relevance of KE’s generation licence if the utility continues to source the majority of its power from the National Transmission and Dispatch Company (NTDC). He suggested revoking the licence, arguing that KE’s reliance on external supply undermines its capacity.
K-Electric defended its position, stating that agreements with power producers and its efficient RLNG-based power plants justify retaining the licence. Officials noted that while the NTDC provides up to 2,000 MW, KE’s summer demand peaks at 3,400 MW.
Industrial representatives and residents of Karachi voiced frustrations over KE’s high electricity rates and persistent load-shedding. The Karachi Chamber of Commerce criticized the impact on businesses, while other stakeholders called for Nepra to take stricter action against KE.
In response, Nepra ordered investigations into load-shedding complaints and urged KE to address inefficiencies promptly. The regulator also proposed penalties for power distributors engaging in commercial load-shedding.
KE officials acknowledged rising electricity demand, driven by a 13% annual increase in domestic consumption. They projected modest growth of 2% to 2.5% over the next five years, supported by industrial recovery. However, Nepra questioned KE’s strategy to meet growing demand without resolving its generation challenges, emphasizing the need for long-term solutions.
Story by Khaleeq Kiani
