KARACHI – September 28, 2016: K-Electric (KE), during the second day of a public hearing regarding its integrated multi-year tariff (I-MYT) petition, presented various aspects of its business proposal. Organized by NEPRA at a local hotel in Karachi, the hearing was also attended by businessmen, philanthropists and civil society.
On the basis of continuation of the Integrated-Multi Year Tariff (I-MYT) structure, K-Electric (KE) will be able to move from a supply deficit to having surplus electricity.
KE spokesperson shared the utility’s road map to meet Karachi’s future power demand which is forecasted to grow by 72% to 5,200MW in the next 10 years. “A stable tariff regime which is based on performance-based benchmarks is critical to cater for additional demand of electricity in the future. The investment will substantially improve the efficiency of the power system in Karachi while enabling the utility to roll out numerous expansion and rehabilitation projects.”
KE has been able to set a successful precedent of private capital playing a positive role through its operational and financial turnaround. KE’s proposed business plan is closely aligned with its mission statement to deliver safe and affordable electricity to Karachi region. Under the proposed plan KE aims to improve average fleet efficiency, increase capacity of power transformers of reduce transmission and distribution losses and further enhance the distribution network.
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.