K-Electric’s power generation costlier than national grid?

ISLAMABAD: The Secretary of the Power Division revealed that power production company – K-Electric – is generating expensive electricity, predominantly from thermal power, ARY News reported on Friday.

During a meeting of the National Assembly’s Standing Committee on Energy, the Secretary of the Power Division revealed that despite high power production cost, the government continues to provide subsidies to K-Electric.

During the session, it was disclosed that K-Electric reported a loss of Rs 30 billion, with Karachi’s electricity demand at 3,500 MW.

Committee member Qamar-ul-Islam Raja pointed out that the government bears the financial losses through subsidies, meanwhile, in response, the CEO of K-Electric clarified that the government provide subsidies in the form of tariff differentials.

READ: K-Electric generates 200pc expensive power than national grid: Document

Dr. Tariq Fazal Chaudhry questioned the efficacy of K-Electric’s privatization model, highlighting its failure to yield the expected benefits.

The Secretary of the Power Division confirmed that all of K-Electric’s electricity is generated from thermal sources. Without government subsidies, the cost per unit would rise significantly.

KE’s CEO mentioned that generating electricity from LNG would cost Rs 40 per unit, raising concerns about the lack of benefits from K-Electric’s privatization, as emphasized by Qamarul Islam Raja.