Nepra Renews Distribution and Supply Licenses to KE

Staff Report

The National Electric Power Regulatory Authority (NEPRA) has granted renewal of the power distribution and supply licenses to KE for 20 years.

This non-exclusive license renewal which the regulator had granted after the previous one expired in July 2023.

During the hearing held on November 28, 2023, various representatives from the Industrial Estate confirmed that there has been a significant improvement in the performance of the utility, and the Authority may consider the grant of a Distribution License to KEL in terms of the amended NEPRA Act.

The Authority is of the considered opinion that the performance of KEL is not up to the mark when compared to the best industry practices worldwide as well as in the region.

However, it is also a fact that KEL is one of the top-performing DISCOs (s) when compared with its peers.

The Chief Financial Officer (CFO), Aamir Ghziani of KEL, said KEL has added a total of 1,957 MW of efficient capacity, including BQPS-III, with an efficiency of around 59%.

Resultantly, the overall efficiency of the generation fleet has improved from 30% to 42%, and losses reduced to 15.3% from 34.2%.

He said that more than 70% of feeders are now free from load-shedding with 100% exemption to industrial feeders. He mentioned that at the time of privatization, KE was a loss-making entity, and the generation was outdated, having efficiency as low as 25%. Government and KE Ink Deals Providing Energy Security for Karachi

KEL invested over PKR 544 billion after privatization, leading to significant improvements in various areas. In this regard, 1957 MW of efficient capacity was added, thus the total generation fleet efficiency improved from 30% to 42%.

Transmission and Distribution losses (T&D losses) were reduced from 34.2% to 15.3%. He mentioned that more than 60,000 Smart Meters were installed.

A KE official added that KE plans to add around 1,282 MW of renewable energy capacity by FY 2030.

Investments related to the power evacuation of these projects are included in the Investment Plan.

To further increase the RE induction while reducing the basket price, KEL is engaged with a globally renowned consultant for a techno-commercial study.

According to KEL, by bringing RE sources to its system, the basket price is expected to reduce from 9.31 cents/kWh to 8.00 cents/kWh.