K-Electric presents its tariff petition

K-Electric presents its tariff petition

KARACHI – September 27th, 2016: K-Electric (KE) participated at a public hearing regarding its integrated multi-year tariff (I-MYT) petition at a local hotel in Karachi. As part of the petition, KE has built a robust business plan over the next 10 years. The proposed plans will enable the utility to further enhance its generation, transmission and distribution footprint.

Organized by NEPRA, the hearing was also attended by businessmen, philanthropists and civil society. Highlighting the investment plan proposed under the petition, KE Spokesperson said, “Pakistan has very little precedent for large scale private sector investment in the transmission sector especially in greenfield projects. The vertically integrated nature of the tariff along with long term regulatory certainty, is necessary for such landmark and unprecedented investments in the sector and the country. The continuous stream of investment from KE reinforces our long-term commitment to Pakistan and shows confidence in future growth in the power sector. The investment, besides further strengthening and developing KE’s infrastructure, will subsequently add more value for our customers.”

KE’s proposed business plan is closely aligned with its mission statement to deliver safe and affordable electricity to Karachi region. It aims to add an additional 4,283 MW of high efficient generation capacity and will also improve average fleet efficiency from 37% in FY15 to 43.3% in FY26, whereas enhancements to the transmission network including a 28% increase in transmission network (km) and an increase in capacity of power transformers of 3,370MVA. Moreover, transmission and distribution losses to reduce from 23.7% in FY15 to 13.8% in FY26, whereas the distribution network will be enhanced by adding over 1,000 new feeders, and over 4,500km of 11kv underground and overhead circuits.

KE has been operating on an Integrated Multi-Year Tariff (IMYT) and through its previous I-MYT, K-Electric ensured an investment of PKR 120.7 billion – well above the proposed business plan at that time. During FY09 to FY15, the utility managed to add 1037 MW in its generation capacity besides enhancement of 768 MVA in transmission capacity. Through these investments, the utility was able to reduce transmission and distribution losses from 35.9% to 23.7%. Most importantly, in 2009, there was load shedding across the board and only 24% of the city was exempted. Today, 61% of the city as well as all industrial zones in Karachi are exempt from load shedding.

Moreover, the utility reaches around 3.5 million lives annually with initiatives like provision of free or subsidized electricity to key major healthcare and welfare organizations besides creating various powerful platforms to engage the youth in healthy activities be it sporting events, providing them professional exposure and encouraging students’ initiatives. The utility has also rolled out a flagship community development project ‘Ujala’ with an estimated investment of PKR 5 billion to empower 1 million lives in 200 communities by June 2017.