Latest news with #K-Electric
Business Recorder
2 days ago
- Business
- Business Recorder
KE's two-decade journey: a privatisation that delivered—I
In Karachi, few institutions are as routinely scrutinised and as casually misunderstood as its power utility. Frequent public discourse continues to echo a familiar but ultimately flawed narrative. Perhaps it's time we shift focus and sift myth from reality, from blame to improvement, from assumptions to accountability, and from outdated narratives to informed dialogue, and view Karachi's energy story through a lens of improvement and shared responsibility. When K-Electric was privatized in 2005, the promise was simple: inject capital, modernize an aging infrastructure, and bring efficiency to a system long strained by operational and financial inefficiencies. Two decades on, the record is clear. Shareholders have brought in USD 700 million in foreign direct investment, and the company has invested over USD 4.6 billion in infrastructural improvements, equivalent to six times its profits, over the same period to rebuild generation, transmission, and distribution. The result? T&D losses have been cut in half, from 35 percent to less than 15 percent, while the grid itself has doubled in physical size. A World Bank Public Expenditure Review confirms the fiscal dividend: PKR 900 billion saved for taxpayers and consumers since privatization. These investments have visibly reshaped Karachi's power infrastructure. The gains manifest in the 30,000 distribution transformers now energising Karachi's neighbourhoods; in the 2,000 plus feeders that keep power flowing; and in the 3.8 million customers, double the 2005 base, who interact with KE through a bilingual WhatsApp channel or the KE Live app. They are visible in the factories where 100 percent of industrial meters are smart, ensuring time-of-use billing and instantaneous outage alerts, and across the network, where Aerial Bundled Cables (ABCs) have been deployed on over 40 percent of PMTs as part of ongoing efforts to curb theft, an approach that has yielded encouraging results in many areas, while continuing to be refined based on ground realities. Pakistan's economic slowdown – marked by inflation, reduced demand, and high input costs – affected industries nationwide, regardless of their location or utility provider. If KE were truly the bottleneck, one would have seen some level of pushback. Instead, what we've seen is the opposite; reliance on KE's stable grid supply, letters of support submitted to NEPRA, and public endorsements during hearings, from financial institutions, industrial associations, community leaders, city's social changemakers, etc. Today, Karachi's industrial zones are completely load-shed exempt. Power systems worldwide are subject to occasional disturbances, often originating from the load side, not the utility. Voltage spikes, for example, are commonly triggered by machinery tripping, cable faults, or poor internal protection, due to machinery not compliant with the grid. Karachi bustling with around 150,000 small and medium scale industries – that ought to happen. Owning to its digitization roadmap, KE remains committed to transparency, regulatory compliance, and continuous service enhancement, ensuring that the voices of its customers are heard, addressed, and respected at every level. Today, over 70% of all customer interactions are handled through digital platforms, including WhatsApp, the KE Live App, and a 24/7 call center, a level of digital engagement unmatched by any other DISCO in Pakistan. Complaints are tracked through ticketing systems, with escalation protocols and response-time targets monitored internally and by NEPRA. It is also important to highlight that KE operates within a multi-stakeholder accountability ecosystem, which includes not just Nepra but also external forums such as the Federal Ombudsman, PMDU, etc. Complaints escalated to such bodies constitute less than 0.1% of the total complaints received. Even in those cases, 98% decisions have consistently validated KE's processes and resolutions, reinforcing the effectiveness of its internal redressal mechanisms. Another self-generated rhetoric is that Karachiites 'pay more.' In reality, KE cannot set prices; consumer tariff is determined by NEPRA under the Government of Pakistan's national uniform-tariff policy and it's the same across the country. Whatever a household pays in Multan is what a household pays in Karachi. Fuel Charge Adjustments, positive or negative, are similarly applied across Pakistan. In fact, since September 2024, KE has filed seven consecutive negative FCAs, including a relief of Rs 4.69 per kwh for April 2025 provisional FCA, the decision of which has also been issued by NEPRA approving a decrease of Rs 4.03 for customers of KE. Every calculation follows the Economic Merit Order: use the cheapest energy source first, pass the actual fuel cost to the bill, refund the difference when global prices fall. Critics point to today's generation mix and conclude KE is 'lagging' on renewables. That snapshot ignores KE's already in implementation of 640 MW renewable energy projects, three of which—the 220MW Dhabeji wind–solar hybrid and 150 MW solar projects at Winder and Bela—have gained NEPRA's approval after receiving lowest-in-country bid levels. They will shift the portfolio toward lower-cost, zero-fuel-cost energy. Under Vision 2030, KE targets 30 percent renewables, a 30 percent cut in outages, and 95 percent load-shedding exemption city-wide, backed by USD 2 billion in fresh investment. (To be continued) Copyright Business Recorder, 2025
Hindustan Times
4 days ago
- Politics
- Hindustan Times
Karachi residents protest blackout, block roads, trigger citywide traffic chaos
A protest over a prolonged power outage in Karachi's Punjab Colony turned into a city-wide traffic nightmare on Saturday, exposing yet again the chronic governance failure and energy mismanagement under the Pakistani state, Dawn reported. K-Electric dismissed the protests as the actions of "miscreants" trying to restore illegal connections. (Reuters/Representational Image) Residents of a 10-storey residential building blocked a major artery near Punjab Chowrangi to protest more than 24 hours of uninterrupted electricity suspension. The building's 80 flats had reportedly been without power since 11 am on Friday. Despite repeated complaints, K-Electric, the city's sole power distributor, allegedly failed to respond, pushing desperate residents to the streets. The sit-in brought life to a standstill on Defence Road and surrounding areas, with traffic clogging for hours. Long queues of goods trailers and tankers, critical to Karachi Port operations, were seen stalled from Qayyumabad to the KPT Flyover. Thousands of commuters were left stranded as major junctions such as Boat Basin, Gizri, and Hino Chowrangi became gridlocked, Dawn reported. This power crisis, which triggered the protest, reportedly began after K-Electric launched an aggressive anti-theft operation in the adjacent P&T Colony. As per Dawn News, residents claim that the entire building lost power following confrontations during the operation, in which KE staff allegedly cut off power without due process, indiscriminately affecting legal and illegal connections alike. K-Electric dismissed the protests as the actions of "miscreants" trying to restore illegal connections. Speaking to Dawn, the KE spokesperson said that their teams were attacked while attempting to stop a large-scale power theft operation allegedly conducted under the cover of a cable TV network. However, no proof was provided that all affected residents were involved in theft. Also read: No visa, no passport: Pakistani man lands in Jeddah instead of Karachi after boarding wrong flight While KE claimed to have restored power to parts of the area following assurances from local leaders and law enforcement, the bigger issue remains Pakistan's inability to provide stable and equitable electricity access to its citizens. The state's persistent failure to upgrade infrastructure and ensure transparency in power distribution leaves millions vulnerable, Dawn reported. This incident is not an isolated failure; it is symptomatic of a broader collapse of governance, where Pakistan's institutions continue to punish ordinary citizens for the state's systemic dysfunction.
Express Tribune
4 days ago
- Business
- Express Tribune
KE CEO says consumers to face load-shedding till they pay bills
K-Electric Chief Executive Officer Moonis Abdullah Alvi said the power utility's consumers will continue experiencing load-shedding until they pay bills. Speaking at Express Tribune podcast, the K-Electric chief said the utility's ATNC loss is less than the average loss across the country at 28 per cent. Besides, the efficiency of power plants has improved from 30 per cent on aggregate basis to 45 per cent. He said the aggregate technical and commercial loss has slumped to 20 per cent from 42 per cent that was at the time of privatization. "We have spent around $4 billion on generation, transmission and distribution," said Alvi, adding the investment has made the company efficient. To a question, he said people come on roads to protest against the load-shedding and they will keep coming as long as they are facing power shutdown. He added that power consumers would keep facing load-shedding unless they pay for the electricity they consume or stop stealing electricity. The K-Electric CEO highlighted that the electricity in Karachi is supplied through 2,200 feeders. Of them, 70 per cent feeders are exempted from load-shedding. The rest of the areas face load-shedding due to Kunda connections. "We are unable to remove Kunda connections from those areas despite our concerted efforts. Even, when we removed them, they were reconnected to the supply lines," said Alvi, adding, "It is not possible for us to provide free electricity". He said the regulator has set K-Electric tariff at Rs40 per unit while the tariff for the other Discos is determined at Rs33 per unit. The K-E consumers are paying for per unit electricity at par power consumers across the country. Alvi noted the generation cost of K-Electric is Rs32 while the generation cost for the Discos across the country is Rs26, which includes nuclear and hydel power.
Business Recorder
4 days ago
- Business
- Business Recorder
KE says accelerating captive-to-grid shift
KARACHI: K-Electric (KE) is actively facilitating Karachi's manufacturing sector to make a smooth shift to the electricity grid, an action that comes in tandem with the government's policy move to encourage industries' switch from captive power plants. Under this banner, KE is holding 'Open House' sessions – specifically designed for industrial customers – in collaboration with trade associations since May this year. The weekly sessions bring together KE's supply business, commercial, technical, and planning teams to engage directly with industry stakeholders in order to support smooth transition from their in-house generation to KE's supply. A priority during this 'one-window KE facility' of a weekly open-house is also to address as promptly as possible any concerns that the customers may have. Customized packages based on actual load requirements, tariff assessments, and infrastructure feasibility are also being provided. KE CEO Moonis Alvi said: 'KE is actively playing its part in helping how power is delivered to Pakistan's industrial backbone. By moving away from fragmented captive generation and toward a unified, reliable grid, we are not only improving operational efficiency for industries but also contributing to national energy optimization.' Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
Sindh energy minister calls on President
KARACHI: Provincial Minister for Energy, Planning, and Development Nasir Hussain Shah called on President Asif Ali Zardari at Aiwan-e-Sadr, Islamabad. During the meeting, Syed Nasir Hussain Shah briefed the President on Sindh's energy issues, the province's representation in OGDCL, and other matters. He noted that problems are arising due to the lack of provincial representation in power companies. Nasir Shah urged President Zardari to ensure the provincial government's representation in K-Electric (KE). He also briefed on the establishment of the Sindh Electric Power Regulatory Authority (SEPRA), stating that the aim of this institution is 'our own electricity, our own tariff' to provide relief to the people from high electricity costs. President Zardari stated that Sindh is the hub of energy and that the development of Sindh is, in fact, the development of the entire country. He assured that Sindh's energy issues will be addressed promptly and its all concerns will be resolved. Copyright Business Recorder, 2025
