The National Electric Power Regulatory Authority (NEPRA) concluded its public hearing today on KE’s tariff petition for its existing power generation plants. During the hearing, KE’s leadership shed light on details regarding issues framed by the Regulatory Authority on its Generation Tariff Petition.
It is pertinent to note that this hearing and its decision is expected to not have any impact on the consumer tariff charged in monthly bills issued to customers, which is governed by the uniform or ‘equal’ tariff policy.
KE has submitted separate requests for each business segment building on the learnings of the current Multi-Year Tariff and the upcoming market reforms including separation of Distribution and Supply businesses and the implementation of CTBCM model. This initiative will provide greater visibility and transparency. In this regard, the company filed its Generation Tariff Petition for the remaining useful life of its six power plants. KE has requested for separate plant wise tariffs cognizant of the vision to move towards a central economic dispatch. Each plant has been benchmarked against comparable existing generation units across the country to ensure consistency.
Commenting on the matter, Spokesperson at K-Electric said, “We would like to thank NEPRA for providing us the opportunity to explain the salient features of our petition in greater detail. Our vision with the generation tariff petition is to ensure that the costs of electricity production are lowered through efficient usage of the power plants with an optimized fuel mix. Furthermore, it is to seek the regulator’s approval on the costs incurred to maintain and operate our plants so that adequate supply is readily available to meet demand. This is a step towards achieving our vision to have 30% supply in our energy mix from renewables by 2030 to enable access to affordable power for all.”
A hearing on KE’s PKR 484 billion investment plan in transmission and distribution until FY30 was held in March. Additionally, the company has filed for a non-exclusive distribution license and has shared a Power Acquisition Programme which outlines the addition of up to 2200 MW of electricity by FY30. A majority of the upcoming addition is based on renewable energy or indigenous sources.
About K-Electric
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square kilometers territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.
