K-Electric (KE) with a view to improving its services has decided to split its transmission and distribution (T&D) operations into independent entities. "In line with its vision to develop best possible mode of functioning in the greater interest of its customers, KE has decided, in principle, to initiate the process to un?bundle KE's operations into independent entities for electricity generation and transmission/distribution", it was stated in a notice sent to Karachi Stock Exchange by the KE.
KE's Board of Directors has already authorised the management to initiate and finalise engagement of a Corporate Legal Consultant and Tax Consultant to finalize the un-bundling structure. The un?bundling of KE's core functions would help provide the independent entities ample opportunity to utilise optimum potential of each unit for efficiency enhancement and value creation through a shift from integrated utility model. Moreover, KE's un?bundling would also enhance manageability of each business entity and would add value for all stakeholders.
It is pertinent to mention that the in?principle approval KE BOD has given to the company's management to initiate the process to un?bundle the integrated utility into separate generation, transmission/distribution entities, was subject to all requisite statutory approvals and consent of shareholders, regulatory bodies, legal constituents, lending institutions and others and completion of all corporate and legal actions required for the purpose.
K?Electric has been operating as the only integrated power company in the country, carrying out all its tasks under the same banner and management while serving an incomparable 2.2 million customers' coverage area of around 6,500 square kilometers. A spokesman for KE, Adil Murtaza, said that company's performance was gradually improving owing to the confidence reposed by stakeholders and consumers in the company. "With these measures, we are foreseeing a massive growth in coming days, while investors will get more benefits in future", he added.
An analyst at JS, Syed Atif Zafar, said that after a decade of financial illness, KE has a major profitable entity owing to major technical overhauling, capacity expansion and efficiency improvement, in particular reduction in T&D losses. He further said that the coal conversion project was another key initiative of the KE. An analyst Yawar-uz-Zaman said that the inclusion of KE in MSCI frontier index has improved its position in global equity market as well as in local equity market. Besides local investors, foreign investors are also very keen to invest in KE.
Comments
Comments are closed.