ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) granted a renewed power distribution license to K-Electric on Friday, extending its validity for a duration of 20 years. The license is designated as non-exclusive.
In addition to the distribution, Nepra also issued a separate supplier license, permitting K-Electric to function as a supplier of last resort (SOLR) throughout the specified 20-year period.
The previous 20-year license held by KE expired in July 2023. Subsequently, Nepra provided K-Electric with an interim distribution license valid for six months, which is set to expire in January 2024.
The decision to renew the license followed a comprehensive hearing that concluded on November 28, 2023. Following the hearing, Nepra officially authorized K-Electric to continue its power supply operations.
The distribution license was granted under Section 20 and 21 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.
The supplier license (to act as SoLR), which is valid from January 19, 2024, to January 18, 2044, was granted under sections 23E and 23F of the Nepra Act, which separates the distribution and supply functions of the power sector.
The company will have to supply electric power to all the eligible consumers in their service territories at the rates and charges approved by Nepra, and also provide electric power supply to the bulk power consumers after a default of their competitive suppliers.
Notably, Nepra may grant electric power supply licenses to any other entity to act as a competitive supplier in the service territories of the distribution company and the company shall not claim any exclusivity concerning the service territory in this regard.
NEPRA said that before granting the licenses to K-Electric, it had garnered feedback from various stakeholders, including Landhi Association of Trade & Industry (LATI), All City Tajir Ittehad Association (ACTIA), Faisalabad Electric Supply Company Ltd. (FESCO), Ministry of Energy Petroleum Division (MoEPtD), Shaheen Industries (SD), Karachi Electric Supply Company Labour Union (KESCLU), Lasbela Industrial Estates Development Authority (LIEDA), Association of Builders and Developers of Pakistan (ABAD), Administration Union Committee No.12, Singo Lane/Syedabad District South Karachi (AUCSL), Korangi Association of Trade & Industry (KATI), Roshan Pakistan Karachi (RPK), Pakistan Civic Society (PCS), District Municipal Corporation Malir (DMCM) and others.
Notably, the service territory of the licensee excludes areas where entities, aside from the licensee, have established their distribution network at the license’s issuance. Those entities may choose to apply for a distribution license from the authority.
If entities -- not holding a distribution license -- fail to apply within 12 months of the license’s issuance, the authority has the discretion to extend the licensee’s service territory to encompass the area of those entities for providing distribution services.
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