ISLAMABAD : October 16, 2023 – The National Electric Power Regulatory Authority (NEPRA) has officially accepted K-Electric’s petition regarding Quarterly Tariff Adjustments (QTA) for the period spanning from April to June 2023. This pivotal development sets the stage for a public hearing, scheduled for October 19, 2023, where NEPRA will scrutinize the request in detail.
K-Electric, the sole vertically integrated utility in Pakistan responsible for electricity supply within a 6,500 square kilometer area encompassing Karachi and its neighboring regions, has submitted a comprehensive proposal for the QTA. This submission includes considerations for unrecovered costs associated with changes in Operations and Maintenance (O&M) expenditures, capacity power purchase, Transmission and Distribution (T&D) loss components, Fuel Cost Adjustment (FCA), along with other essential adjustments and write-off claims in accordance with the prescribed mechanisms.
The Uniform Tariff Policy, which is universally applicable across Pakistan, typically shields end consumers from the direct impact of Quarterly Tariff Adjustments. Nonetheless, the final verdict hinges on NEPRA’s assessment and subsequent notification by the Federal Government.
A Brief Overview of K-Electric:
K-Electric, initially established as KESC in 1913, underwent privatization in 2005, marking a significant transformation in the landscape of electricity provision in Pakistan. Covering a substantial territory that includes Karachi and its surrounding areas, K-Electric’s role in the power sector is of utmost importance.
The company’s majority shares (66.4%) are publicly listed on the Pakistan Stock Exchange (PSX) and are owned by KES Power, a consortium of investors with notable contributions from Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding) of Kuwait, and the Infrastructure and Growth Capital Fund (IGCF).
Notably, the Government of Pakistan maintains a minority stake (24.36%) in K-Electric, underscoring the public-private partnership that is integral to the energy sector in the country.
As the upcoming public hearing on K-Electric’s QTA request approaches, both stakeholders and the general public will be keenly observing the proceedings, as the outcome will have implications not only for the company but also for the broader energy landscape in Karachi and its surroundings.
NEPRA’s determination and the subsequent actions of the Federal Government will be pivotal in shaping the future course of electricity tariffs and services in this vital region of Pakistan.