K-Electric fails to enhance cheaper electricity generation: NEPRA

ISLAMABAD: K-Electric, the sole electric distribution company in Karachi, has failed to enhance inexpensive renewable energy generation, the NEPRA said in a report.

It is to be mentioned here that the National Electric Power Regulatory Authority (NEPRA) had recently in January granted K-Electric, 20-year distribution and supply licences.

The NEPRA has released details of its review report on the performance of power plants for Year 2022-23.

“The K-Electric has continued its dependence on expensive electricity generation and failed to enhance production of cheaper renewable energy,” the regulator said.

The NEPRA while declaring the power utility’s inexpensive power generation from renewable sources as dissatisfactory remarked that K-Electric insisting on power generation from expensive sources.

“K-Electric only producing 2.4 percent of its electricity from renewable energy sources,” the report read.

“It has been repeatedly advised for installation of renewable energy plants to bring the generation costs down with improvement in power generation mix,” according to report.

“The K-Electric repeatedly contacted for addition of expensive power plants and insisted for it,” the regulatory authority said.

The K-electric’s previous 20-year license reached its term in July 2023. The company had sought non-exclusive distribution and supplier licences for the next 20 years ahead of the liberalisation of the power sector.

Subsequently, NEPRA granted a six-month extension to K-Electric on a provisional basis and later in January granted, 20-year distribution and supply licences to the company.