K-Electric welcomes competition in Karachi’s energy sector

By Our Correspondent
September 19, 2024
A representational image of K-Electric logo. — X/File

KARACHI: Monis Alvi, chief executive officer of K-Electric (KE), has expressed support for the entry of other electricity distribution companies into Karachi, stating that competition would create an environment where performance can be fairly evaluated.

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Speaking at the Korangi Association of Trade and Industry (KATI) on Wednesday, Alvi emphasized that KE should not be confined to Karachi and should be permitted to expand its operations to other cities across Pakistan.

Addressing a gathering of industrialists at KATI, Alvi highlighted KE’s advocacy against Power Holding Limited (PHL) charges on multiple platforms, including Nepra. He reiterated that KE is not involved in the country’s circular debt issue; however, citizens of Karachi are still burdened with these additional charges. He called on the business community to join forces with KE to eliminate such surcharges and to raise these concerns with the government, the Ministry of Energy, and Nepra.

Alvi also discussed the company’s achievements in net metering, noting that KE’s performance in this area is among the best. However, the shipment of metres has been delayed due to recent typhoon threats, leaving many consumers waiting. KE has requested Nepra to allow consumers to install metres that meet KE’s standards. He announced that the system for new user connections and name changes is now fully online.

Regarding connections for cottage industries in Mehran Town, Alvi stated that while Nepra’s regulations apply, immediate connections will be provided to those with commercial plots.KATI President Johar Qandhari welcomed the KE team and acknowledged the company’s significant role in supplying electricity to Karachi’s industrial sector. He praised the company for investing Rs3 billion in improving the city’s power infrastructure while also pointing out areas that require further enhancement. Qandhari noted that the Korangi Industrial Zone, with a sanctioned power load of 600MW, is the largest industrial zone in Pakistan, and KE teams are actively supporting KATI members in addressing their power needs.

Qandhari expressed concerns over delays in new connections and general maintenance issues that hinder industrial growth. He highlighted the increase in power outages during the summer and called for urgent attention to this issue. He also emphasized that Karachi consumers are being burdened with additional tariffs, including PHL charges, amounting to approximately Rs5 per unit, despite having no involvement in the country’s circular debt.

Qandhari suggested that renewable energy projects, such as solar and hydropower, should be integrated into the system to reduce tariffs and improve supply. He supported the idea of allowing other distribution companies (Discos) to operate in Karachi to foster competition and enhance services for consumers.

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