K-Electric finally gets 20-year licence from NEPRA

KARACHI: In a significant move, K-Electric, the sole electric distribution company in Karachi, has finally acquired 20-year distribution supply licences from National Electric Power Regulatory Authority (NEPRA) as its six-month extension expired today, ARY News reported on Friday.

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

Subsequently, NEPRA granted a six-month extension to K-Electric Limited (KE) on a provisional basis – which “guaranteed” uninterrupted power supply to Karachi, one of Pakistan’s largest and most populous cities.

The decision for renewal followed a comprehensive hearing that concluded on 28 November 2023. Post-hearing, NEPRA has now authorized K-Electric to continue its power supply operations in Karachi, Uthal, Bela, Vinder, Hub, Dhabeji, and Gharo.

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Meanwhile, Nepra – in a statement issued today – stated that K-Electric Limited (KEL) submitted an application on May 26, 2023 for the grant of Electric Power Supply Licence (Supplier Licence) to act as Supplier of Last Resort (SoLR) in its designated service territory.

“Subsequent to the segregation of distribution and supply functions in the 2018 Amendment Act, the authority has approved a new Distribution Licence to K-Electric in terms of Section-20 and 21 of the NEPRA Act to the extent of distribution/network business only,” read the statement.

According to the information provided by KE, the authority said the company has a total of 2,068 (public and dedicated) 11 KV feeders.

“KE has informed that it is currently serving to around 3.56 million electricity consumers. Out of the said, approximately 3.10 million are domestic, 0.519 million are commercial, 23,618 are industrial, 2096 are tubewell/agricultural, 185 are Public Lighting, 19057 are general services and 196 are bulk power consumers,” it added.