Nepra Grants Provisional extension in distribution license to KE

The power regulator has granted a six-month provisional extension in distribution license to KEL on a provisional basis to ensure an uninterrupted power supply to Karachi.

Nepra stated that KEL had submitted an application on December 01, 2022, for the renewal/extension of its Distribution License.

The power regulator had previously granted KEL the Distribution License on an exclusive basis, granting power to the utility to provide distribution services, sell electric power, implement schemes, and engage in incidental activities in the Service Territory and Concessional Territory on a nondiscriminatory basis.

The original term of the license was fixed at twenty (20) years, expiring on July 20, 2023.
Nepra had already initiated the required regulatory process for the renewal of the Distribution License.

On July 17, 2023, Nepra held a Regulatory Meeting and decided in principle to conduct a public hearing on the matter.

Recognizing that the completion of the regulatory process would take 3-6 months, the Authority deemed it prudent to grant interim relief to KEL to continue its operations.

The application of KEL for the renewal of its Distribution License is under process.
In the interest of the public to ensure uninterrupted supply of electric power to consumers in the Service and Concessional Territories of KEL, the Authority has decided to provisionally allow the renewal of Distribution License No. 09/DL12003, dated July 21, 2003, for a period of six (06) months from the original expiry, i.e., July 20, 2023, or until the final determination of the Authority on the matter, whichever occurs earlier,” Nepra said adding that it will be subject to some conditions.Check KE Duplicate Bill |K-Electric Duplicate Bill 2023

According to the conditions, KEL shall not have any exclusivity for the provision of Distribution and/or Electric Power Supply services, and the Authority reserves the right to issue other licenses in its Service/Concessional Territories.

The provisions pertaining to “Exclusivity” will no longer be applicable, as Section 21 of the amended NEPRA Act does not allow the same. KEL will be obligated to allow Bulk Power Consumer(s) – BPC(s) to obtain supply from any generation company.