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Tag: K-Electric

  • NEPRA acknowledges KE’s operational performance

    NEPRA acknowledges KE’s operational performance

    KARACHI: A report published by National Electric Power Regulatory Authority (NEPRA) has acknowledged the improved operational performance of the KE, the utility company responsible for power generation and supply to Karachi.

    The report, published annually by National Electric Power Regulatory Authority (NEPRA), also highlighted the longstanding issue of supply of low gas to K-Electric’s power plants at Korangi and SITE, which is affecting 200 MW of generation capacity for Karachi and leading to expensive power generation.

    Through sustained investments, KE has been able to drive a significant reduction in Transmission and Distribution (T&D) losses, closing the financial year at 15.35%, lower than the regulator’s target of 15.95%. The utility has also been able to add over 250,000 new connections to its network bringing the total consumer base to over 3.4 million at the close of the fiscal year. Additionally, the number of units of energy served to these customers has also increased.

    Commenting on the results, Director of Communications & Spokesperson KE, Imran Rana stated, “We continue to explore ways to improve our services for our growing customer base, and we are very pleased that KE’s operational improvement is being acknowledged in Power Sector’s credible annual performance report from the Regulatory Authority, NEPRA.

    We look forward to carrying this momentum year on year, through increased digitization and automation of our processes and sustained investment across the value chain. We are also keeping our stakeholders – including the NEPRA Authority and the Ministry of Energy, Government of Pakistan among others – fully informed of the factors that continue to affect KE’s sustainability. Long delays in release of the Tariff Differential Subsidy (TDS) claims, and absence of supply of natural gas to KE are two important issues on top of the list that directly affects our ability to serve our customers.”

    KE has also been actively developing a culture of regular bill payment and expanded its facilities to offer consumers convenient channels to clear their dues. Over the year, KE’s website has been integrated with NIFT ePay gateway offering real-time bill payment through interbank fund transfers.

    Consumers can use the KE Live App to pay their bills from the convenience of their phones regardless of geographic location. Multiple banks and financial institutions have also been brought on board as partners offering cashback incentives and the option of converting utility bill payments on installments for certain credit cardholders.

    Furthermore, KE is also engaging with area representatives at a community level for support in promoting a culture of bill payment and has also established multiple facilitation camps across the city to address and support billing queries. These efforts have resulted in improved recovery ratios which closed at 96.69%. During the same period, recovery ratios for DISCOs across the country dropped by 7 percentage points to 90.51%.

    The company has also maintained a strong focus on safety, creating awareness on pertinent infrastructure issues including encroachment of constructed properties, the use of kundas, and unauthorized civil works carried across the city which create an unsafe environment for citizens. In addition to securing its infrastructure through earthing and grounding protocols, the utility continues to liaise with relevant civic agencies to ensure a safe and uninterrupted supply of electricity to the city. This has enabled KE to achieve a 28% reduction in safety related incidents within its territory. By comparison, safety incidents increased by 14% within state-owned DISCOs.

    The report also commented on macroeconomic and other factors such as the devaluation of the Rupee against the US Dollar, delays in completion on power projects and outages of new power projects which exacerbated the cost of fuel procurement and raised the cost of electricity for the end-user. The report recommends a lot of measures for the improvement of power sector for Government to consider.

  • KE adjusts electricity bills under FCA relief package

    KE adjusts electricity bills under FCA relief package

    KARACHI: K-Electric, the power distribution utility for Karachi, has started providing relief under package to waive Fuel Charge Adjustment (FCA), which was announced by Prime Minister Shehbaz Sharif.

    According to a statement issued by the power utility on Tuesday, following PM’s Announcement of FCA’s relief package for the month of June, 1.8 million eligible electricity consumers across KE serviced territory in Karachi and adjoining regions are receiving benefit and being delivered adjusted bills for August at their doorsteps with extended due dates.

    READ MORE: Date extension demanded for electricity bills payment

    The announcement of June’s FCA relief has come in two parts, it was first announced for Non-ToU Residential Consumers having electricity consumption up to 200 units in June, and later it was extended to the same category of consumers with power consumption up to 300 units in June following the announcement by the Government of Pakistan.

    While the revised bills for August are being delivered to the consumers on their premises, it is also important to note that all those eligible consumers who have already paid their non-revised August bills will receive adjusted bills for the month of September.

    READ MORE: Power tariff hike termed disaster for industries

    Commenting on the matter, Spokesperson K-Electric said, “We are taking every possible measure to pass on the benefit to the qualifying consumers in line with the announcement made by the Honorable Prime Minister.

    Following the announcement of the relief package, our customer care centers operated for extended hours and remained open during the weekends for consumers’ convenience.

    However, to further ease the procedure for their benefit, we are also delivering the bills to consumers’ doorsteps so that they do not have to visit our centers physically. KE Customers may also download their bills via KE WhatsApp Service, KE Live App and from the company’s website.”

    While reiterating the eligibility criteria of the relief package, the Spokesperson further said, “June FCA’s relief applies only to Non-ToU residential consumers who have a power consumption equal to or less than 300 units.

    READ MORE: Pakistan petroleum sales slump by 24% in 2MFY23

    All the remaining electricity consumers, such as ToU residential consumers, Non-ToU residential consumers having power consumption exceeding 300 units, commercial, and industrial consumers do not qualify for the relief, and thus, are requested to timely pay their bills to avoid late payment surcharge.”

    “Our customer care platforms, including our call center 118, 8119 SMS service, and social media channels are also available 24/7 to answer any query from our consumers in this regard,” the Spokesperson further added.

    K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    The majority shares (66.4 per cent) of the company are listed in the PSX 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 is also a minority shareholder (24.36 per cent) in the company.

  • Withdrawal of sales tax through electricity bills demanded

    Withdrawal of sales tax through electricity bills demanded

    KARACHI: Authorities have been urged to withdraw the collection of sales tax through monthly electricity bills for service providers.

    Ms. Fauzia Rasheed, advocate high court at M/s. Lawyers Inc., a law consultancy firm, has strongly protested over the collection of sales tax by the federal government through monthly electricity bills from service providers.

    READ MORE: Tax through electricity connections on retailers, service providers

    In a letter to K-Electric, the power supply utility in Karachi, and forwarded to the chairman of Federal Board of Revenue (FBR), Federal Ombudsman, and chambers of commerce, Fauzia pointed out that her company had received monthly electricity bill, which included: further tax at 3 per cent; extra tax/retail tax at 5 per cent; and newly introduced sales tax on retailers at Rs6,000 being an inactive taxpayer.

    She claimed that the sales tax collection had been made in the bill for the month of July 2022 as her company was a legal service provider.

    Furthermore, as per the record of the Federal Board of Revenue (FBR) the law firm is an active taxpayer as per requirement under Income Tax Ordinance, 2001.

    READ MORE: FBR explains income tax on export of services

    In her letter, she explained that Section 3(1A) of the Sales Tax Act, 1990 relates to further tax (leviable where taxable supplies are made to a person who has not obtained registration number), Section 3(5) of the Act relates to Extra Tax (The government may imposed extra tax in addition to tax levied under sub section (1), (2) & (4) of Section 3) and Section 3(9) relates to sales tax on retailers, before and after the amendments made through Finance Act, 2022, under the Sales Tax Act, 1990 are applicable on the persons who is/are dealing in retail business of the taxable goods/supplies and required to be registered under the Act, 1990 but did not registered himself /themselves in FBR for the said purpose.

    “Indeed, we [the law firm] are not dealing in supply /retail of taxable goods and as such you have wrongly levied and charged further tax u/s 3(1A), extra tax u/s 3(5) or 3(9) and retail tax u/s 3(9) of the Sales Tax Act, 1990 through the Electric Bills,” according to the letter.

    READ MORE: FBR restores 100% depreciation deduction

    The law firm is only engaged in rendering of legal services on the subject premises, it added.

    Under the Sales Tax Act, 1990, neither the company is required to be registered with FBR nor various sales tax through electric bills i.e., Further Tax, Extra Tax and Retail Sales Tax are applicable on it, being a “Service Provider”.

    Fauzia said that the K-Electric imposed the sales tax on the monthly bill on the basis of assumption that the commercial connection holder was a retailer.

    “You [the K-Electric] have imposed two taxes under the single provision of law i.e., Section i.e., 3(9) of the Act, 1990 relying on prior and post amendment made in Section 3(9) of the Sales Tax Act 1990 through Finance Act, 2022 which cannot be permitted under the law to charge the taxpayer twice, even if it is applicable,” she pointed out towards important provisions of the law.

    The relevant amendment made through Finance Act, 2022 in Section 3(9) of the Act, 1990 is reproduced here as under:-

    READ MORE: FBR notifies graduated tax rates on disposal of securities

    Section 3(9),–

    (i) for the words “five per cent where the monthly bill amount does not exceed rupees twenty thousand and at the rate of seven and half percent where the monthly bill amount exceeds the aforesaid amount”, the words “rupees three thousand per month where the monthly bill amount does not exceed rupees thirty thousand, rupees five thousand per month where the monthly bill amount exceeds rupees thirty thousand but does not exceed rupees fifty thousand and rupees ten thousand per month where the monthly bill amount exceeds rupees fifty thousand” shall be substituted;

    (ii) after sub-section (9), the following provisos shall be inserted, namely:–

    Provided that the above rates of tax shall be increased by one hundred percent if the name of the person is not appearing in the Active Taxpayers List issued by the Board under section 181A of the Income Tax Ordinance, 2001 on the date of issuance of monthly electricity bill:

    Provided further that the Board may through a general order prescribe any persons or class of person who shall pay upto rupees two hundred thousand per month through their monthly electricity bill.

    Despite having number of employees who are engaged in monitoring of meter or recording of energy consumption from meter installed on the subject premises, the utility provider has blatantly charged such taxes without verification of status whether the consumers is/are liable to be charged for such taxes or not.

    It came to our knowledge from number of electricity consumers that the K Electric Limited has charged such taxes from all Commercial Consumers irrespective of their business status and FBR’s active taxpayer’s profile and treated all of them as “In-active Retailer of taxable goods” which cannot be justified or allowed under the Act, 1990.

    Such an act of M/s K Electric Limited comes within the meaning of mal-administration as defined under Section 3 of the Federal Tax Ombudsman Ordinance, 2000.

    Keeping in view of above legal position, the imposition of impugned taxes through Electric Bills is illegal, unlawful, harsh and unwarranted under the law.

    The advocate advised the utility provider to remove the taxes mentioned immediately from the subject electricity bills and issue fresh corrected bills. “Otherwise, we have left with no option but to approach the Federal Ombudsman for redress of the grievances,” she warned.

  • NEPRA to conduct public hearing on KE’s petition on July 28

    NEPRA to conduct public hearing on KE’s petition on July 28

    KARACHI: National Electric Power Regulatory Authority (NEPRA) has announced to conduct a public hearing on July 28 over the petition submitted by K-Electric on Fuel Charges Adjustments (FCA) for June 2022.

    The utility has sought an increase of Rs11.38/KWh in its FCA petition for June 2022. As per applicable tariff across the country, fuel adjustment is reviewed every month and is applicable on consumer bills for only one particular month.

    READ MORE: Revised power tariff, taxes on electricity bills in Pakistan

    The major impact on the monthly Fuel cost adjustment of June 2022 is due to an increase in the fuel price increase of Furnace Oil and power purchased from CPPA-G.

    The price of RLNG in June 2022 has increased by 50 per cent from March 2022. The price of RLNG as at June 2022 is Rs4,627 / MMBTU as compared to the price of Rs3,083 / MMBTU in March 2022.

    The price of electricity from CPPA-G in June 2022 has increased by 74 per cent from March 2022. The price of power purchased from CPPA-G as at June 2022 is Rs15.844/KWh as compared to the price of Rs9.098/ KWh in March 2022.

    READ MORE: K-Electric, Siemens sign deal for KKI Grid construction

    Fuel Charge Adjustment (FCA) is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers following NEPRA’s scrutiny and approval and are one-time charges. Consumers also receive a benefit when the cost of fuel decreases.

    After the public hearing and scrutiny, the regulator will make a decision on the request and issue instructions on the period during which these costs can be applied to consumer bills.

    READ MORE: Rupee devaluation severely affects KE’s profitability

    K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square Kilometre territory including Karachi and its adjoining areas.

    The majority shares (66.4 per cent) of the company are listed in the PSX 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 is also a minority shareholder (24.36 per cent) in the company.

    READ MORE: KE’s profit up by 161% on high tariff adjustment

  • Revised power tariff, taxes on electricity bills in Pakistan

    Revised power tariff, taxes on electricity bills in Pakistan

    KARACHI: Various changes have been made to rates of electricity and tariff structure in Pakistan that are effective from July 2022 under the governing laws, rules, and regulations of the Government of Pakistan and NEPRA.

    The revises rates are applicable nationwide including on consumers in KE’s service territory.

    The determination of costs of electricity to be recovered from consumers across Pakistan in their bills comes under jurisdiction of NEPRA and the Government of Pakistan.

    READ MORE: K-Electric, Siemens sign deal for KKI Grid construction

    These changes include the non-extension of relief for zero-rated industries as well as the relief on peak-hour electricity consumption for industrial consumers. The retailer tax with revised slabs has been introduced for commercial consumers. Non-Time of Use residential consumers will also see a revision in their applicable tariff along with a change in the methodology for their calculation.

    Protected and Unprotected Consumers

    As per SRO 1004 dated 7th July 2022, the tariff rates and slab structure for tariff of unprotected non-ToU residential consumers (i.e. consumers with sanctioned load below 5kW) has changed.

    READ MORE: Rupee devaluation severely affects KE’s profitability

    “Protected” consumers, as per tariff terms proposed by GoP under its Power Subsidy Rationalization Plan and by NEPRA as those non-ToU residential consumers with monthly electricity usage of 200 units or less, consistently for the past 6 months. All other non-ToU residential consumers fall in unprotected category.

    Previously, category of unprotected consumers were provided the benefit of one previous slab in their billing (i.e. their billing was done in two slabs), which has now been removed. Consumers in the unprotected category will now only be charged on one slab in which their units fall. Accordingly, tariff rates have also been adjusted downwards to minimize impact on consumers.

    Industrial Customers Bills

    Industrial consumers were previously being provided a relaxation by Government of Pakistan, allowing them to utilize electricity during peak hours at the same rates as off-peak hours. That relief was allowed until June 2022 and accordingly with no further extension. Peak rates would now be applicable on industrial consumers as well.

    READ MORE: KE’s profit up by 161% on high tariff adjustment

    Similarly, zero-rated (or export-oriented) industries were being provided electricity at a fixed rate of USD 9 cents/unit, which was applicable till June 2022, has now been removed. Now, these industries will be charged as per applicable tariff rates to normal industrial consumers.

    In addition to the above charges, it must also be noted that routine charges under FCA will be applicable in July bills within KE’s service territory.

    Retailer Tax for Commercial Consumers

    Per the Government of Pakistan Finance Act 2022 applicable across the country, retailer tax on unregistered retailers have been revised and effective from 1st July 2022. For consumers on commercial tariff, a minimum fixed tax of PKR 3,000 will be charged for bills between PKR 0 and PKR 30,000. Monthly bills between PKR 30,001 and PKR 50,000 will be taxed PKR 5,000, while those with monthly bills above PKR 50,0001 will be taxed PKR 10,000.

    Important to note that inactive income taxpayers will be charged twice the taxable amounts.

    Further, these taxes will apply even if the consumer’s premises are not in use.

    Fuel Charges Adjustments (FCA):

    READ MORE: K-Electric to raise Rs12 billion through Sukuk

    Unprecedented hikes in the price of furnace oil and RLNG were translating into higher costs of electricity production for utilities, and higher costs of electricity for consumers as well. Under the tariff mechanism determined by NEPRA, incremental costs of fuel are recovered from consumers in their bills via Fuel Charges Adjustments (FCA) after the regulator’s scrutiny and approval. Within the decision for FCA, regulator also states that in which month FCA is to be charged. For example, FCA of March 2022 was charged in the month of June 2022.

    Accordingly, in its determination for the month of April 2022, NEPRA has allowed KE to charge PKR 5.2718 per unit for units consumed in April 2022 to be billed in the month of July 2022. Further, NEPRA has allowed the FCA for May ’22 be recovered in two parts with PKR 2.6322 per unit charged in July and the remaining PKR 6.8860 per unit in the bills of August ’22. This means customers will see two entries for FCA in their July bills i.e., FCAs for April and May, respectively.

    Speaking about the changes, Spokesperson KE stated “We understand that our consumers may have a number of questions about these revisions. To assist them during this time, we have updated our website with frequently asked questions. To reiterate, these changes are introduced under the governing laws of the Government of Pakistan and the rules of the regulatory authority NEPRA and are applicable across the country.

  • K-Electric, Siemens sign deal for KKI Grid construction

    K-Electric, Siemens sign deal for KKI Grid construction

    KARACHI: K-Electric has awarded the EPC contract for the construction of 500/220 kV KANUPP – K-Electric Interconnection (KKI) Grid to Siemens (Pakistan) Engineering Company Limited, according to a statement issued on Tuesday.

    The signing ceremony between Siemens and K-Electric was held at KE’s Head Office. KKI Grid will be the addition of fourth interconnection in KE’s network following the existing NKI and KDA Grids and the upcoming Dhabeji Interconnection.

    The estimated value of the EPC contract is around $84 million. KE had also entered into agreement in February 2022 for the construction of a 220 kV double circuit transmission line for evacuation of power from the KKI Grid.

    The KKI Interconnection, will enable KE to off-take 500 to 800 megawatts (MW) of electricity from the National Grid from summer of 2024 (evacuation capacity of KKI Grid is more than 1000 MVA). Additionally, the infrastructure enhancement will improve system stability and reliability for consumers.

    As per NEPRA’s State of Industry Report 2021, KE registered a sales growth of 25 per cent among its industrial consumers in 2021, almost 11 percentage points higher than the rest of the country. Coupled with sustained investment of over Rs430 billion since privatization, Karachi’s appetite for energy is increasing at a rapid pace.

    Cognizant of the present and evolving demands, KE has been working actively with the Government of Pakistan and especially the Ministry of Energy under the guidance of NEPRA to bolster its infrastructure to enable Karachi to receive additional power from the National Grid.

    Speaking about the occasion, Chief Generation and Transmission Officer KE, Abbas Husain stated: “KE is fully committed towards supporting Karachi’s energy ambitions. We are not only working with multiple stakeholders to cater the current demand, but also continue to innovate our services to cater the growth.

    “We are grateful to the Federal Government, Ministry of Energy, and our regulator NEPRA for their continued patronage and support. This spirit of collaboration and consensus is integral to the sustainability of Pakistan’s economic and strategic hub.”

    CEO & MD Siemens Pakistan, Markus Strohmeier also expressed his happiness, stating, “This project is another significant step to strengthen Karachi’s development as modern industrial and economic metropolis.

    “Through KKI Interconnect, we are increasing and securing stable access to electricity for the greater society, who’s future is built on reliable energy supply.”

    KE has also achieved the first fire on the first unit of its flagship RLNG-based 900 MW Bin Qasim Power Station 3 (BQPS-III). Upon commissioning, this landmark project will significantly increase KE’s generation capacity while also enhancing efficiency of KE’s generation fleet.

    The plant is utilizing the latest in turbine technology and is anticipated to be among the top five most efficient generation units in the country upon completion.

    Looking to the future, KE is also aligned with the Federal Government’s vision to increase the share of renewable energy into its generation mix with a planned addition of almost 1,100 MW of green energy by 2030 subject to required approvals.

  • Rupee devaluation severely affects KE’s profitability

    Rupee devaluation severely affects KE’s profitability

    KARACHI: The net profitability of K-Electric declined by 84 per cent to settle at Rs1.5 billion in relation to last year’s Rs 9.44 billion mainly sharp devaluation in Pakistan Rupee (PKR).

    A statement issued on Monday stated driven by continued and targeted investments of Rs 36.99 Billion across the power value chain, key operational indicators showed positive growth over comparative period.

    However, despite showing consistent improvement in reduction of transmission and distribution losses of 1.5 per cent, and driving an increase in the units sent out by 2.8 per cent, KE’s net profitability declined by 84 per cent to settle at Rs 1.5 billion in relation to last year’s Rs 9.44 billion.

    “The impact of KE’s operational performance was set-off by negative impact of Pakistani rupees’ substantial devaluation in the international currency market resulting in exchange loss of Rs 4 billion in comparison to last year’s gain of Rs 1.2 billion along with an increase in financing cost by Rs 1.4 billion due to increase in effective rate of borrowing and Mid-term review (MTR) decision.”

    As of March 31, 2022, KE’s net receivables from various Federal and Provincial government entities stood at Rs 53 billion on principal basis. Delays in reconciliation and release of legitimate payments from these entities are severely affecting the Company’s cashflow position and ability to further accelerate investment in key power infrastructure.

    Further, on March 01, 2022, NEPRA issued its decision on KE’s MYT Mid-Term Review, wherein NEPRA made a downward adjustment of Rs 0.22/kWh on the utility’s determined tariff and disallowed an additional investment of Rs 138 billion by KE to improve on its services including power supply and reliability.

    An important update for this quarter is the finalization and deployment of KE’s 900 MW RLNG-based power project, BQPS-III. The first Unit of 450 MW proceeded with its mandatory testing in March 2022 as well as synchronization with KE’s Grid, and is now in the final testing stages before commissioning.

    KE has also upgraded its infrastructure in its service areas to keep pace with and facilitate the economic growth in the city’s peri and suburban regions. Aside from rehabilitation, the grids in Winder are being enhanced and the 66kV line upgraded to 132 kV along with commissioning new lines to improve transmission capacity and reliability in the region. Additionally, to improve on capacity and systemic reliability, 6 new power transformers have been integrated into the network to ensure reliable power supply to consumers across Karachi.

    On the distribution front, the Company continued to make strides on its loss reduction efforts. Over 200,000 KG of illegal hooks (Kunda) have been eliminated from the system in the first 9 months of the current fiscal year, and a total of 800 Pole Mounted Transformers have been converted to Aerial Bundled Cables (ABC), with around 125,000 new connections installed. Furthermore, to focus on customer centricity, 17 additional ‘Customer Facilitation Centers’ have been deployed to facilitate our customer’s billing inquiries.

    In line with Sustainable Development Goals (SDG7), KE has signed an MoU with Sindh Energy Department (SED) and the World Bank (WB) for the establishment of solar projects with 350MW capacity. This tri-partite collaboration is set to add another 700 GWh to KE’s total clean energy supply and off-set 300-350 kilotons per annum of carbon emissions. KE has also partnered with Akhuwat and donated Rs 7.5 million as interest free microfinance loans to households for the installation of solar photovoltaic (PV) systems within the service territory of the Company.

    Aside from sustainable development, KE is heavily invested in empowering individuals and communities. After the success of the first cohort of the Roshni Baji Neighborhood Women Ambassador Programme, an expanded batch of 60 women were inducted in November 2021. They will be on field for nine months across Karachi’s most densely populated neighborhoods. By the end of March 2022, the Roshni Bajis held discussions on safety and legal connections with over 210,000 households, bridging the gap between the utility and a key demographic of women consumers in Karachi. Separately, 11 women from the first batch of the programme have been hired as KE female Meter Data Maintenance Officers (MDMO). This programme has received international recognition at the S&P Global Platts, under the Global Energy Award. This is also the first time for an energy company in Pakistan to receive the coveted award and recognition.

    In line with KE’s commitment towards safety, the Company initiated a comprehensive plan to revalidate the safety parameters on its High-Tension and Low-Tension network with the goal to improve on network resilience and uphold public safety; with 99 per cent of project completion achieved. Furthermore, KE’s HSEQ department conducted extensive Behavior Safety Management sessions for field staff to inculcate a culture of safety across the company.

    KE continues to engage with stakeholders on finalization and execution of the Power Purchase Agency Agreement (PPAA) and Interconnection Agreement (ICA) for supply of 2,050 MW to KE from the National Grid along with a Tariff Differential Subsidy Agreement (TDS) for timely release of subsidy which will streamline the process for the utility and relieve the pressure on the company’s financial viability.

  • K-Electric to raise Rs12 billion through Sukuk

    K-Electric to raise Rs12 billion through Sukuk

    KARACHI: K-Electric Limited, the leading power generation and supply company, has announced plans to raise Rs12 billion through the issuance of Sukuk.

    (more…)
  • KE’s profit up by 161% on high tariff adjustment

    KE’s profit up by 161% on high tariff adjustment

    KARACHI: K-Electric Limited (KE), the power generating and supply company, on Thursday announced massive 161 per cent growth in net profit for quarter ended September 30, 2021, mainly surge in revenue in the shape of tariff adjustment.

    The profit after tax of the KE grew by 161 per cent to Rs2.9 billion for the quarter ended September 30, 2021 as compared with Rs1.11 billion in the same quarter of the last year.

    The company announced Rs0.11 as earnings per share (EPS) for the quarter under review as compared with Rs0.04.

    The revenue of KE exhibited sharp growth of 33 per cent to Rs114.14 billion for the quarter ended September 30, 2021 as compared with Rs85.55 billion in the same quarter of the last year.

    The sales of energy grew by 27 per cent to Rs86.92 billion for the quarter under review as compared with Rs68.40 billion in the same quarter of the last year.

    In the head of tariff adjustment, the revenue of the company recorded 58.72 per cent increase to Rs27.22 billion for the quarter ended September 30, 2021 as compared with Rs17.15 billion in the same quarter of the last year.

    Cost of sale grew by 36 per cent to Rs97.49 billion as against Rs71.68 billion.

    Operating expenses of KE recorded a significant increase to Rs1.81 billion for the quarter ended September 30, 2021 as compared with Rs338 million in the same quarter of the last year.

    PSO registers 120% growth in quarterly profits
  • K-Electric profit surges five times

    K-Electric profit surges five times

    KARACHI: The annual profit of K-Electric, the utility company providing electricity to Karachi city, has surged by five times to Rs12 billion for the year ended June 30, 2021.

    According to financial results approved by the board of directors on Monday, the profit of the company sharply increased to Rs12 billion for the year 2020/2021 as compared with the loss of Rs3 billion in the preceding fiscal year.

    Sale of energy increased to Rs255 billion for the year under review as compared with Rs193.87 billion in the preceding year.

    The company claimed tariff adjustment of Rs70 billion for the year 2020/2021 as compared with Rs95 billion in the preceding year.

    Cost of sales recorded at Rs265.85 billion for the year ended June 30, 2021 as compared with Rs245 billion in the preceding year.

    The company declared gross profit of Rs59.19 billion for the fiscal year 2020/2021 as compared with Rs44 billion in the preceding fiscal year.

    Expenses of the company for the year under review increased to Rs32.7 billion as compared with Rs26.79 billion during the preceding fiscal year.

    Tax rates on electricity consumption during 2021-2022