The National Electric Power Regulatory Authority (Nepra) has issued a stern warning to K-Electric and other power distribution companies (Discos), cautioning them of daily penalties if they continue load shedding under the pretext of Technical and Commercial (T&C) losses.
The warning came during a public hearing on K-Electric’s Fuel Cost Adjustment (FCA) request for November 2024. The company has sought a negative adjustment of Rs4.98 per unit, aiming to refund Rs7.179 billion to consumers. However, it simultaneously requested an adjustment of Rs8.7 billion for pending costs related to fuel actualization, partial load, open cycle, and degradation curves up to June 2024.
Nepra’s tariff team noted that allowing this cost would result in an increase in KE’s tariff for February 2025, negating the impact of the proposed negative FCA adjustment.
Consumers expressed their frustration during the hearing, particularly over persistent load shedding in Karachi. Karachi Chamber representative Tanveer Barry highlighted that KE’s per-unit cost of Rs11.02/kWh is 19% higher than the Rs9.25/kWh average cost for other Discos, attributing the disparity to inefficiencies in KE’s power plants. Barry called for accountability, adding that load shedding in industrial zones and commercial areas is severely impacting businesses.
Barry also raised concerns about Karachi’s tax contributions, saying, “Karachi is the number one taxpayer yet continues to face severe load shedding.” He suggested special incremental packages for areas experiencing load shedding.
Member (Technical) Rafique Ahmad Shaikh instructed Nepra officials in Karachi to investigate and report on the situation, emphasizing that fines have already been imposed on Discos conducting unauthorized load shedding. “If this practice continues, I recommend imposing fines on a daily basis,” he added.
Responding to the allegations, KE CFO Aamir Ghaziani denied load shedding in industrial areas, stating it is limited to high-loss areas with significant power theft. He claimed that industries in Karachi are exempt from load shedding.
When questioned about KE’s projected growth in electricity consumption over the next five years, Ghaziani estimated growth at 2.5-3%, citing factors such as industrial shifts from gas to grid power, solarization, and broader economic and political stability.
Nepra’s focus on load shedding and tariff discrepancies reflects growing consumer dissatisfaction and underscores the need for improved efficiency and accountability in the power sector.
