Karachi, April 14, 2025 – The Association of Builders and Developers of Pakistan (ABAD) has raised serious concerns against K-Electric, submitting a formal complaint to the National Electric Power Regulatory Authority (NEPRA) over what it terms a “discriminatory approach” in applying the diversity factor for power load assessments.
According to a detailed report published by Business Recorder, ABAD accused K-Electric of treating small and mid-sized development projects unfairly by only applying the diversity factor to projects with a total assessed load exceeding 80kW. ABAD stated that this policy not only lacks technical merit but also imposes an undue financial burden on smaller developments.
In its complaint, ABAD emphasized that residential projects, regardless of their size, generally exhibit similar consumption patterns. Despite this, K-Electric’s current policy excludes projects below the 80kW threshold from benefiting from diversity factor considerations, potentially inflating connection charges and infrastructure costs for smaller developers and end-users.
ABAD asserted that this practice amounts to an “unjust penalty” on smaller projects, which already operate on tighter margins. “This selective application has no practical or engineering justification,” ABAD argued, urging NEPRA to step in and enforce equitable treatment for all developers.
ABAD has called on NEPRA to direct K-Electric to immediately revise its policy and adopt a uniform standard in applying the diversity factor, regardless of a project’s load capacity. The association maintains that such a move would help restore fairness, ensure consistency across the power distribution sector, and promote a more inclusive environment for urban development in Karachi.
Responding to the criticism, a K-Electric spokesperson defended the company’s practices, stating that they are fully in line with NEPRA’s Consumer Service Manual. The manual, according to K-Electric, outlines standardized guidelines for assessing load requirements and applying diversity factors across all distribution companies in Pakistan.
Nevertheless, ABAD remains firm in its stance, reiterating that the current policy disproportionately disadvantages smaller developments and undermines investor confidence in the sector. ABAD has vowed to continue its efforts to push for regulatory clarity and equitable treatment from power distribution authorities moving forward.