Karachi, On June 27, 2024, the National Electric Power Authority (NEPRA) held a hearing on K-Electric’s latest distribution, transmission, and supply petitions, which are part of the utility's Multi-Year Tariff plan for the fiscal years 2023-24 to 2029-30. These discussions are crucial for future investments intended to bolster the reliability and efficiency of electricity supply in Karachi.
According to K-Electric, the petitions underscore the need for a financial structure that supports the utility's ability to invest in and maintain its network, ensuring that Karachi's growing energy demands are met sustainably. These hearings do not pertain to changes in the electricity rates charged to consumers on their monthly bills, which are regulated by Pakistan's uniform tariff policy ensuring consistent charges across different customer categories nationwide.
The focus of the hearings is to finalize decisions on K-Electric's proposed USD 2 billion investment plan, which includes significant upgrades to transmission and distribution infrastructures and a Power Acquisition Programme that aims to increase the share of renewable and indigenous resources in the city's energy mix. The company has proposed introducing a cost-reflective tariff structure with annual and quarterly indexations to adapt to macroeconomic changes and sustain financial health.
As part of its investment strategy, K-Electric plans to expand its transmission network by adding new grid stations, including Karachi's first 500 kV facility at KKI, to accommodate the increasing customer base. Furthermore, the utility aims to incorporate 1300 MW of renewable energy projects under its Power Acquisition Programme, enhancing the sustainability and affordability of its power supply.
K-Electric is also investing in advanced technologies such as Advanced Distribution Management Systems to improve the governance of its network. These initiatives are expected to reduce line losses and power interruptions, thereby enhancing the overall stability of the network.
The timely approval of these petitions by NEPRA is deemed critical for ensuring that Karachi can continue its economic growth with a reliable and sustainable power supply, vital for both residents and businesses in the region.