ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has taken serious note of performance issues of K-Electric including loadshedding, asking the latter to ensure provision of reliable electricity to the residents of Karachi.
In a letter to CEO, KE, Additional Director General, Iftikhar Ali Khan stated that Nepra has received a large number of complaints regarding the persistent and excessive loadshedding being carried out by K-Electric across various areas of Karachi. In several localities, electricity outages have reportedly exceeded 12 hours per day, with individual spells ranging between 2.5 to 3 hours.
These extended power disruptions have severely affected the lives of residents, particularly during the ongoing extreme summer heat. On one hand, this situation is compounding the hardships faced by the citizens of Pakistan’s largest commercial hub; on the other, it is contributing to deteriorating law and order conditions and triggering adverse behavioral shifts within the population.
NA panel directs KE to stop unannounced load-shedding
Beyond the immense suffering of ordinary people, the persistent load shedding is also causing serious disruptions to commercial operations and economic activity in the city.
Based on the complaints received and statistical data available with Nepra, it has been observed that the overall performance of K-Electric is deteriorating across several key parameters, including but not limited to transmission and distribution (T&D) losses and recovery percentage. Of particular concern is the decline in load-shedding-free areas previously reported by K-Electric as approximately 76%, now reduced to just 70% - a figure notably lower than that of several public sector DISCOS.
One of the primary objectives of K-Electric’s privatization was to ensure measurable improvements in operational efficiency and to provide reliable, uninterrupted electricity supply to consumers within its service territory. The current downward trend in performance clearly undermines the intended goals of privatization and raises serious questions about K-Electric’s ability and commitment to fulfil its obligations:
According to Nepra, over time, K-Electric has increasingly relied on power procured from the NTDC system, which is significantly more economical than its own generation sources. This shift has led to a substantial reduction in K-Electric’s overall fuel cost component.
However, despite this cost advantage, K-Electric has failed to translate the benefit into any tangible relief for its consumers particularly in term of continuous electric supply to its consumers, which is a clear reflection of poor operational and strategic performance. At present, NTDC has the capacity to supply up to 1600 MW of electricity to K-Electric at much lower rates, yet it has been observed that K-Electric is not fully utilizing this available capacity.
Instead, the utility continues to implement extended load shedding, depriving consumers of the cheaper electricity readily accessible through NTDC. This approach is not only inefficient but is also adversely impacting all stakeholders-consumers, the economy, and the broader power sector. The ongoing hardship faced by residents within K-Electric’s service territory is, therefore, directly attributable to the utilities continued mismanagement and operational shortcomings.
NEPRA further observed that K-Electric is operating some of its generation plants at part load while simultaneously enforcing load shedding. This practice compromises fuel efficiency and results in higher generation costs, including part-load adjustment charges, which are ultimately passed on to consumers-penalizing them further despite the availability of generating capacity. This reflects not only poor operational planning but also a disregard for consumer welfare.
Additional Director General (NEPRA) stated that it must be emphasized that it is the core responsibility of all distribution companies, including K-Electric, to reduce transmission and distribution (T&D) losses and enhance recovery percentage through effective management, modern controls, and operational efficiency. These objectives are already accounted for in the company’s allowed revenue requirement.
However, resorting to feeder shutdowns as a means to control T&D losses or force recoveries is neither legally justifiable nor ethically acceptable. Such practices unfairly punish compliant consumers and undermine public trust in the utility’s management.
Nepra, in the recent past, has concluded proceedings against various DISCOs, including K-Electric, for carrying out unjustified load shedding, which resulted in the imposition of monetary penalties. However, instead of taking corrective actions and improving operational performance, these utilities, including K-Electric, have chosen to seek relief, rather than addressing the root causes of non-compliance.
In this context, K-Electric is strongly advised to take immediate and meaningful steps to improve its operational performance. This includes the urgent elimination of load shedding, significant reduction of T&D losses, and substantial improvement in recovery percentage, the letter noted.
The further stated that for several months, the Fuel Charges Adjustment (FCA) for K-Electric has remained negative, which has led to a decrease in consumer electricity bills. Therefore, KE Electric’s assertion that high electricity bills are a primary cause of electricity theft and non-payment lacks merit.
The Nepra expects that K-Electric will act in the best interest of its consumers, its own long-term viability, and the broader national power sector, by urgently addressing the serious performance issues and ensuring the provision of reliable electricity to the residents of Karachi.
Copyright Business Recorder, 2025
Comments
Comments are closed.