Nepra grants 20-year power distribution licence to Karachi's DHA Energy Supply Company

The National Electric Power Regulatory Authority (Nepra) has granted electricity distribution and supply licences to DHA Energy Supply Company (Private) Limited (DESCO), allowing it to operate in DHA City Karachi (DHACK) for a 20-year period beginning October 1, 2026, Business Recorder reported.

Under the licences, DESCO has been authorised to distribute electricity and act as the Supplier of Last Resort (SoLR) within its service territory on a non-exclusive basis, in accordance with the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.

The licences will remain valid until September 30, 2046.

DESCO will take over electricity supply in DHA City Karachi after the existing arrangement with K-Electric (KE) expires on September 30, 2026.

The move is expected to affect KE's consumer base, as DHA residents are generally regarded as among its better-paying customers.

The approval is part of broader power sector reforms introduced through amendments to the Nepra Act, which seek to liberalise the electricity market by separating supply and distribution functions and allowing multiple licensees to operate.

Nepra said DESCO had demonstrated sufficient financial and technical capability, having already established key infrastructure in DHA City Karachi, including grid stations, transmission lines and a distribution network.

As the Supplier of Last Resort, DESCO will be required to provide uninterrupted electricity to all eligible consumers within its service territory on a non-discriminatory basis, including customers affected by the failure of any competitive supplier.

The regulator directed DESCO to comply with all applicable laws, including Nepra's tariff determinations, procurement regulations and performance standards.

The company has also been instructed to submit its tariff petition within 90 days if a tariff has not already been determined at the time of the licence's issuance.

Nepra also clarified that the licences are non-exclusive, allowing other competitive suppliers to operate within the same service territory under the country's evolving competitive electricity market framework.

The decision marks another step in Pakistan's power sector reforms aimed at promoting competition, improving service delivery and expanding consumer choice in the electricity market.