KARACHI: Moonis Alvi, Chief Executive Officer of K-Electric, has expressed his support for the entry of other electricity distribution companies in Karachi, stating that competition would foster an environment where performance could be fairly evaluated.
Speaking at the Korangi Association of Trade and Industry (KATI), Alvi said that K-Electric should not be restricted to Karachi and should be allowed to expand its operations to other cities across Pakistan.
Alvi highlighted K-Electric’s efforts in advocating against Power Holding Limited (PHL) charges on multiple forums, including Nepra.
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He reiterated that KE is not involved in the country’s circular debt issue, yet Karachi’s citizens are forced to pay these additional charges. He called upon the business community to join forces with KE to work towards eliminating such surcharges and raise these concerns with the government, Ministry of Energy, and Nepra.
Alvi also discussed the company’s achievements in net metering; noting that KE’s performance in this area is among the best. However, the shipment of meters has been delayed due to recent typhoon threats, leaving many consumers waiting.
K-Electric has requested Nepra to allow consumers to install meters that meet K-Electric’s standards. Furthermore, he announced that the system for new user connections and name changes has been made fully online.
On the issue of connections for cottage industries in Mehran Town, Alvi stated that while Nepra’s regulations apply, immediate connections would be provided to those with commercial plots.
KATI President Johar Qandhari welcomed the KE team and acknowledged the company’s significant role in supplying electricity to Karachi’s industrial sector. He praised KE for investing PKR 3 billion in improving the city’s power infrastructure, while also pointing out areas that require improvement.
Qandhari noted that the Korangi Industrial Zone, with a sanctioned power load of 600 MW, is the largest industrial zone in Pakistan, and K-Electric teams are actively supporting KATI members in addressing power needs.
Qandhari expressed concerns over new connection delays and general maintenance issues that are hindering industrial growth. He highlighted the increase in power outages during the summer and called for urgent attention to this issue. He also emphasised that Karachi consumers are being burdened with additional tariffs, including PHL charges, amounting to approximately PKR 5 per unit, despite having no role in the country’s circular debt.
Qandhari suggested that renewable energy projects, such as solar and hydropower, should be integrated into the system to reduce tariffs and improve supply. He supported the idea of allowing other distribution companies (Discos) to operate in Karachi to create competition and improve services for consumers.
Rehan Javed, Vice Chairman of KATI’s Standing Committee, added that the current electricity cost of PKR 50 to 60 per unit is unsustainable for industries. He stressed the importance of uninterrupted power supply and reducing tariffs to sustain industrial production.
Copyright Business Recorder, 2024