Nepra Issues License To DHA DHA Energy: Maqsood Khan
The regulator has formally issued the Electricity Distribution and Supplier of Last Resort Licences to DHA Energy Supply Company (DESCO) for DHA City Karachi. These licences, valid for a period of twenty years, represent a significant milestone in Pakistan’s power sector, establishing a regulated distribution and supply framework for a uniquely situated private development.
Maqsood Anwar Khan Member Nepra said that DHA City Karachi, located approximately 56 kilometres from the city, had no existing connection to either the national grid or K-Electric’s network. In practical terms, there was no conventional distribution system available to serve the area.
In that sense, he said that this licence was not one option among several; rather, it was the arrangement that emerged as the most expedient and workable arrangement after the Authority carefully examined the ground realities.
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He said that stakeholders had raised substantive objections on financial strength, technical capacity, readiness and operational experience — and the Authority engaged with each one on merit.
Where DESCO’s own balance sheet, as a newly incorporated entity, could not provide direct answers, the Authority looked to the demonstrated strength of its parent company,” he said.
Even further, he said that the tariff, use-of-system charges, and connection charges all remain subject to NEPRA’s continued approval and oversight — ensuring that consumer protection remains at the very heart of this arrangement.
So this case stands on its own footing, shaped by a unique combination of geography, infrastructure constraints, and institutional capability. It also demonstrates how the liberalized framework introduced under the amended NEPRA Act can facilitate carefully regulated solutions where the conventional model is not readily available, while continuing to safeguard consumer interests and uphold regulatory standards,” he added.
