K-Electric granted 20-year licences for distribution, supplier of last resort

K-Electric Ltd (KEL) has been granted a non-exclusive distribution licence and a supplier-of-last-resort (SoLR) licence for 20 years, valid until Jan 18, 2044, by The National Electric Regula­tory Authority (NEPRA).

The development came on Friday as the extension in distribution licence and award of SoLR for the next 20 years came about after the majority of consumer groups from Karachi supported KEL’s request in the interest of continuity and better service delivery with the utility’s commitment to Rs484bn future investment.

This means that smaller private power distribution companies with a licence from NEPRA would be allowed into the power distribution and sale business, particularly in housing societies and colonies but their default or inability to ensure power supply to consumers would shift the rights, responsibilities and benefits of the power supply to KE under the SoLR.

KEL’s previous 20-year distribution licence expired in July 2023.

However, Nepra had allowed an interim licence for six months.

NEPRA extending the license noted that it was “of the considered opinion that the performance of KEL is not up to the mark when compared to best industry practices worldwide as well as of the region” but said it was also a “fact that KEL is one of the top-performing Disco(s) when compared with its peers”.

Moreover, NEPRA was also “of the view that despite being below par, no other option but KEL is having a licence for distribution business”.