The power utility says retaining the generation unit as a secondary reserve will strengthen fuel security, reduce reliance on expensive diesel and help manage summer electricity demand.

K-Electric (KE) has approached the National Electric Power Regulatory Authority (NEPRA) seeking approval to retain Unit 5 of Bin Qasim Power Station-I (BQPS-I) as a secondary reserve until 2030.

In its application, KE requested an extension of the unit’s useful life to cater for contingency requirements, with electricity generation to be dispatched in accordance with the Economic Merit Order (EMO).

KE said the need to retain the unit had increased because of fuel supply security concerns arising from the prevailing geopolitical environment.

The company highlighted several potential risks, including the unavailability of National Grid Company (NGC) interconnections, forced outages at power plants and independent power producers (IPPs), and shortages of regasified liquefied natural gas (RLNG) and natural gas due to circumstances beyond its control.

According to KE, keeping Unit 5 available would also help address low gas pressure constraints, reduce the need to use expensive high-speed diesel (HSD) and minimise electricity load management during peak summer demand.

The utility maintained that extending the unit’s operational life would be in the best interests of consumers by providing additional generation capacity during emergencies.

KE submitted its application under Regulation 10(2) of the NEPRA Licensing (Application, Modification, Extension and Cancellation) Procedure Regulations 2021.

The company also submitted supporting documents, including the proposed licence modification, justification, tariff and service quality impact statement, board resolution and affidavit.

KE deposited a licence modification fee of Rs2.606 million, net of withholding tax of Rs424,323, through a Habib Bank Limited cheque dated July 27, 2026.

NEPRA’s approval is required for the proposed extension.