K-Electric CEO admits expensive electricity in Karachi

KARACHI: The CEO of K-Electric, Moonis Alvi, has acknowledged that electricity rates in Karachi are indeed high.

Residents of Karachi are enduring up to 12 hours of load shedding daily in the sweltering summer heat, despite paying some of the highest electricity rates in the country.

The combination of extreme temperatures and unannounced power outages has made life increasingly difficult for Karachiites.

Speaking on ARY News’ program Off the Record, Moonis Alvi admitted that electricity is expensive but shifted responsibility to the federal government, stating that prices are determined by the National Electric Power Regulatory Authority (NEPRA).

“We submit tariff proposals to NEPRA, and they issue the final decision,” he said. “We bill consumers according to the government’s directives.” Moonis Alvi also noted that K-Electric now operates under a non-exclusive license, allowing other companies to supply electricity in Karachi as well.

He explained that K-Electric generates electricity using furnace oil and regasified liquefied natural gas (RLNG). “If we are granted the authority, we would charge consumers based solely on the actual cost of electricity generation,” he added.

Despite the country facing a severe shortage of natural gas, impacting even domestic consumers, Moonis Alvi argued that if natural gas is provided to K-Electric it may help reduce electricity costs.

Addressing the issue of power theft, he said, “A meter is installed at each PMT that helps detect theft. If theft is high in a specific PMT area, we take targeted action. We are also implementing a new system to disconnect only those PMTs where electricity theft is occurring.”

K-Electric CEO claimed that approximately 2,200 feeders in Karachi, covering around 70% of the city, are exempt from load shedding.

However, he stated that the remaining 30% of feeders experience losses of up to 87%, primarily due to theft or non-payment of bills. “On some feeders, outstanding dues are as high as 70%. If bill payments improve, we can ensure uninterrupted electricity supply,” he concluded.