Forced load-shedding: Nepra issues show-cause notice to KE
The show cause notice was issued on June 23, 2025, the day Power Division blocked relief of Rs 4.69 per unit for the consumers of Karachi for April 2025 under monthly FCA mechanism.
According to Nepra, a distribution company shall have plans and schedules available to shed up to 30% of its connected load at any time upon instruction from NTDC. This 30% load must be made up from separate blocks of switchable load, which can be disconnected in turn at the instruction from NTDC. A distribution company shall provide copies of these plans to NTDC.
Sindh PA slams KE for carrying out 'unjustified' load-shedding
Nepra argued that wherever possible NTDC shall give distribution companies advance warning of impending need for load shedding to maintain system voltage and/or frequency in accordance with the Grid Code.
As per the provisions of the Grid Code, NTDC shall maintain an overview and, as required, instruct each distribution company the quantum of load to be disconnected and the time of such disconnection. This instruction shall be given in clear, unambiguous terms and related to prepared plans.
The Authority issued an Explanation to the Licensee under Regulation 4(1) and 4(2) of NEPRA (Fine) Regulation, 2021 on January 08, 2025, on account of non-compliance of Authority's orders.
The Regulator argued that contrary to instructions, KE is carrying out AT&C based load shedding which is in violation of NEPRA Act & Performance Standards (Distribution) Rules 2005. In this regard, a feeder containing commercial losses (theft of electricity and nonpayment of dues by some consumers) is completely switched off for some hours a day despite the fact that some consumers Ion the same feeders are regular paying consumers. This establishes that compliant consumers are unnecessarily being punished due to some defaulters.
The Authority had taken notice of this and initiated and concluded the proceedings by imposing a penalty ofRs.50 million upon KE. The Authority is continuously emphasizing that the Licensee should carry out load shedding at Pole Mounted Transformer (PMT) level whenever it would be necessary, meaning thereby, the licencee can only carry out load shed upon instruction of system operation in case of generation shortage or transmission constraints.
Meanwhile, KE started a project of installation of AMI/AMR meters at distribution transformer level at a cost of Rs. 600 million. The primary purpose of this project is to identify specific energy loss at transformer level in terms of theft and non-payment along with other commercial benefits. Secondly, the Licencee stated that it could remotely connect & disconnect the supply at transformer level through the AMI/AMR meters. The project was completed in Dec 2021 and test run was performed up to June, 2022.
The Authority had gone through the record, reports, and submissions of the Licencee regarding the project of installation of AMI/AMR meters at each PMT. The Authority further observed that the Licensee is achieving all commercial benefits through the said project, however, it is not ready to give relief to the people of Karachi by carrying out load shedding at PMT level if necessary, in light of applicable documents.
Moreover, it is on record that during public hearings in the matter of monthly Fuel Cost Adjustment (FCA), the people of Karachi largely complained about excessive load shedding.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
21 hours ago
- Business Recorder
‘Grow More Wheat' competition: Jhang's farmer bags 1st position
LAHORE: Muzaffar Mahmood, a progressive farmer from District Jhang secured the 1st position in 'Grow More Wheat' competition arranged by the Punjab government by having a wheat yield of 69.96 maunds per acre, earning him an 85-horsepower tractor. This was announced at the prize-distribution ceremony among the provincial and divisional level winners of the competition held on Wednesday. On this occasion, the portal for applications under the second phase of the Green Tractor Program was also formally launched. Minister for Agriculture and Livestock Punjab Syed Ashiq Hussain Kirmani attended the ceremony as the chief guest, while Parliamentary Secretary for Agriculture Usama Khan Leghari and Secretary Agriculture Punjab Iftikhar Ali Sahoo were also present. Muhammad Afzal from District Kasur achieved the second position with a yield of 69.87 maunds per acre and received a 75-horsepower tractor, while Shahid Abbas Khan from Dera Ghazi Khan secured the third position with 69.72 maunds per acre and was awarded a 60-horsepower tractor. Kirmani personally handed over the keys and documents of the tractors to the successful farmers. In addition, cash prizes of Rs 1 million, Rs 800,000, and Rs 500,000 were distributed among the first, second, and third place winners of the Lahore Division wheat competition, respectively. Addressing the ceremony, Kirmani said the service and prosperity of farmers are among the top priorities of Chief Minister Punjab. Under the Chief Minister's vision, modern agricultural machinery facilities are being introduced to increase yields and reduce production costs. He informed that under the second phase of the Green Tractor Program, 10,000 tractors ranging from 75 to 125 horsepower will be provided to farmers with a subsidy of Rs 1 million per tractor. The Minister further stated that under the Punjab Agriculture Transforming Program, projects such as an interest-free loan scheme, establishment of agri-malls, provision of Rs. 75 billion through the Kissan Card under the Wheat Support Program, and free distribution of 1,000 tractors to farmers cultivating wheat on 12.5 acres or more are successfully underway. He announced that before the next wheat sowing season, the Chief Minister Punjab will announce a special package worth Rs 100 billion to support farmers. The Agriculture Secretary said that the government is taking concrete steps to promote farm mechanization, reduce crop production costs, and ensure the supply of quality agricultural inputs. These initiatives will prove to be milestones in increasing farmers' income and advancing the agriculture sector. At the conclusion of the ceremony, the Provincial Minister for Agriculture distributed certificates among officers demonstrating outstanding performance, including Director General Agriculture Extension Ch Abdul Hameed, Director General Agricultural Information Punjab Naveed Asmat Kahloon, and others. Additional Secretary Agriculture (Planning) Aamir Shehzad Kung, Additional Secretary Agriculture (Task Force) Punjab Muhammad Shabbir Ahmed Khan, wheat farmers, and representatives of the tractor industry also attended the event. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
Spot rate up Rs100 per maund
LAHORE: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Wednesday increased the spot rate by Rs 100 per maund and closed it at Rs 16,400 per maund. Cotton Analyst Naseem Usman told Business Recorder that the local cotton market remained firm and the trading volume remained satisfactory. He also told that the rate of new cotton in Sindh is in between Rs 16,400 to Rs 16,500 per maund and the rate of cotton in Punjab is in between Rs 16,300 to Rs 16,500 per maund. The rate of Phutti in Punjab is in between Rs 6,500 to Rs 7,600 per 40 kg and the rate of Phutti in Sindh is in between Rs 7,200 to Rs 7,700 per 40 kg. The rate of cotton in Balochistan is in between Rs 16,300 to Rs 16,400 per maund. The rate of Phutti in Balochistan is in between Rs 6,800 to Rs 7,700 per maund. approximately, 1000 bales of Tando Adam were sold in between Rs 16,200 to Rs 16,400 per maund, 800 bales of Sanghar were sold in between Rs 16,200 to Rs 16,400 per maund, 200 bales of Layyah were sold at Rs 16,200 per maund, 200 bales of Vehari were sold at Rs 16,225 per maund, 200 bales of Khanewal, 200 bales of Kassowal were sold at Rs 16,200 per maund and 200 bales of Winder were sold at Rs 16,250 per maund. The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 100 per maund and closed it at Rs 16,400 per maund. Polyester Fiber was available at Rs 330 per kg. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
RLNG: Supply glut or policy failure?—II
The current financial stress in the gas sector is partially obscured by elevated LNG spot prices, which are currently above Pakistan's LNG contract price. However, with over 174 MTPA of new liquefaction capacity coming online starting 2026 and global supply projected to outpace demand, global spot LNG prices are expected to decline substantially. In such a scenario, the viability of diverting surplus cargoes under the Net Proceeds mechanism will diminish significantly. In addition, the allocation of 25 surplus cargoes to SNGPL for FY26 has increased its prescribed price from Rs 1,330 to Rs 1,890.25 per MMBtu. RLNG diversion to residential consumers yields an average recovery of ~ USD 4 per MMBtu, significantly below the delivered cost of ~ USD 12 per MMBtu. This results in a subsidy of ~ USD 8 per MMBtu, a major contributor to the gas sector circular debt, now exceeding Rs 3 trillion. The RLNG surplus has also triggered curtailment of ~270 MMCFD of indigenous gas production, resulting in losses of ~ USD 378 million to upstream E&P companies, according to OGDCL. This is particularly concerning given the country's rapidly depleting indigenous gas reserves and the urgent need to incentivize new E&P investments. Addressing the RLNG surplus and reviving local industrial demand for gas/RLNG are essential to restart the oil and gas exploration and development cycle. Meanwhile, despite the transition of CPPs to the grid—as reflected by the ~90 percent decline in captive gas consumption—the situation in the power sector has shown no improvement. Following a 21 percent YoY increase in generation in April, generation for May and June was only 1-1.5 percent higher in FY25 compared to FY24, and 3 percent below the reference generation level in June 2025. Overall, generation in the fourth quarter of FY25 showed no improvement. Effectively, the gains from the CPP transition to the grid have been wiped out by consumers shifting to on- and off-the-grid solar solutions, meaning that the industry's competitiveness has been scapegoated to extend a short lifeline to an otherwise unsustainable grid stuck in a utility death spiral. In response to the severe financial crisis created by the deliberate destruction of captive power demand and the resulting RLNG surplus, the government is now resorting to issuing massive RLNG price adjustment bills, spanning a decade from 2015 to 2022, and demanding payment within an unreasonably short timeframe of 2 working days. Bills amounting to hundreds of millions of rupees were delivered without any warning, transparent calculations, or proper reconciliation, especially given that RLNG rates were capped at significantly lower levels during much of this period. Reopening settled accounts from years past is tantamount to unleashing a Pandora's box, creating an untenable situation for manufacturers who have already fulfilled their contractual obligations and sold their output, largely for export markets. The industry finds itself bewildered as to how it could possibly mobilize such large sums with no warning. It is utterly baffling, and frankly reckless, that the government expects fresh investment to flow into Pakistan when it is busy slapping existing investors with unexpected, decade-old RLNG price adjustment bills, turning their financially stable businesses into a nightmare from the past. The ongoing crisis in Pakistan's gas sector is fundamentally rooted in mismanagement and deliberate suppression of RLNG demand from industrial captive users. Contrary to narratives of a supply glut, there is ample demand within the industrial sector for RLNG at full market prices — without any government subsidy. Yet, distortionary policies continue to obstruct the natural supply-demand equilibrium. To move forward, it is imperative to first confront the truth: the core issue lies in excessive government regulation. The same regulatory chokehold historically pushed industries into captive power generation, led to bloated surplus generation capacity on the grid, and now forces industries to consume this surplus grid power, simultaneously fostering an RLNG surplus in the gas market. Undoubtedly, the high share of stranded capacity on the grid must be addressed, but it is untenable and entirely short-sighted to impose those costs on the industrial sector, the backbone of any economy. This sector provides jobs, generates tax revenue, earns foreign exchange, and drives a high economic multiplier effect. As the government continues down the path of destroying industry through punitive energy policies, it jeopardises the very economic foundation on which the country's economic future depends. The real solution requires dismantling these regulatory constraints and empowering competitive, market-based energy systems. The government must relinquish its heavy-handed control and allow industries the freedom to select their energy sources—free from both subsidies and policy distortions. Pakistan's latent energy demand is vast but remains constrained by restrictive policies. By restoring market dynamics and abandoning one-size-fits-all mandates, Pakistan's energy sector can regain stability and efficiency, paving the way for broader economic recovery and sustainable growth. (Concluded) ==================================================================================== CPPA-G Power Generation (as per FPA petitions) ==================================================================================== FY25 Actual FY24 Actual FY25 Change FY25 Reference FY25 Change ('000 GWh) ('000 GWh) over FY24 ('000 GWh) over Reference ------------------------------------------------------------------------------------ April 10.4 8.6 20.93 percent 10.2 1.96 percent May 12.8 12.6 1.23 percent 12.6 1.23 percent June 13.7 13.5 1.48 percent 14.1 -2.84 percent Q4 36.9 34.7 6.21 percent 36.9 -0.12 percent ==================================================================================== Copyright Business Recorder, 2025
