K-Electric Planned Rs 484 Billion Investment Affirms Commitment to Quality Services, Says CFO

K-Electric Planned Rs 484 Billion Investment Affirms Commitment to Quality Services, Says CFO

Karachi, November 28, 2023 – Aamir Ghaziani, the Chief Financial Officer of K-Electric, expressed the company’s dedication to providing high-quality services as he announced the planned Rs 484 billion investment and the proposed addition of 1,200 MW of renewable energy.

Ghaziani emphasized that these initiatives underline K-Electric’s commitment to meeting customer needs and expectations.

K-Electric is optimistic about obtaining a non-exclusive distribution license and supplier license for the next 20 years based on these commitments. The National Electric Power Regulatory Authority (NEPRA) conducted a hearing today on K-Electric’s petition for the grant of non-exclusive distribution and supplier licenses for the next two decades, covering its service territory, which includes Karachi, Dhabeji, Gharo in Sindh, and Balochistan’s Hub, Bela, and Vinder regions.

The hearing drew the participation of various stakeholders, including representatives from Karachi’s industries and the general public. K-Electric’s senior leadership, including Aamir Ghaziani, Chief Distribution Officer Fawad Gilani, and Chief Marketing and Communications Officer Sadia Dada, represented the company and addressed queries posed by the regulator.

Discussing the outcomes of privatization, K-Electric shared that it has invested approximately PKR 544 billion (USD 4.4 Billion) in enhancing power supply to Karachi. This substantial investment has led to the addition of 1,957 MW of generation capacity and a remarkable 12 percentage points improvement in fleet efficiency from 30% in 2005 to 42% in 2023. The recent commissioning of the most efficient 900 MW RLNG plant is expected to further boost fleet efficiency to 49% when operated for an entire year. Since privatization, the company has doubled transmission and distribution system capacity, resulting in a 50% reduction in line losses.

Much of the discussion during the hearing centered around tariff considerations, particularly in seeking benefits for industries based in Karachi. Some participants expressed satisfaction with the network and associated services, while others suggested improved strategies.

Responding to questions about improving service reliability, K-Electric highlighted its investments in IT and technology-based interventions to modernize infrastructure and enhance service delivery. Pioneering initiatives include the use of the Geographical Information System (GIS) and the deployment of 60,000 smart meters, providing greater visibility into power consumption trends.

Aamir Ghaziani, KE’s CFO, stated, “We remain committed to providing customers with the best quality of services. Our upcoming PKR 484 billion investment plan and proposed addition of over 1,200 MW of renewable energy are indicative of this commitment.”

K-Electric, formerly known as KESC and incorporated in 1913, is a publicly listed company that became privatized in 2005. It is the only vertically integrated utility in Pakistan, supplying electricity within a 6,500 square-kilometer territory, including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed on the PSX and owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan also holds a minority stake (24.36%) in the company.

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