ECC greenlights recovery of Rs.1.52/unit surcharge and addresses key financial matters
Islamabad, June 21, 2023 – The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar, met on Wednesday to discuss and approve important financial decisions. Among the significant outcomes, the ECC gave its nod to the recovery of a surcharge from K-Electric consumers.
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The Karachi Chamber of Commerce and Industry (KCCI) has requested the management of K-Electric to extend the last date for payment of electricity bills in view of the recent Eid holidays.
(more…)KARACHI: K-Electric unveils a plan to invest Rs484 billion in transmission and distribution business, according to a statement issued on Monday.
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KARACHI: Pakistan and China companies have signed Memorandum of Understanding (MoU) for collaborate on exploring renewable energy.
(more…)KARACHI: K-Electric has filed a suit before Sindh High Court against a former member of Board of Directors demanding Rs5 billion as damages.
(more…)KARACHI: K-Electric has requested NEPRA to pass a reduction of PKR 10.26 per unit in customer bills under Fuel Charges Adjustment (FCA) for the month of December 2022.
(more…)KARACHI: Touseef Hassan Farooqi, Chairman, National Electric Power Regulatory Authority (NEPRA) has said that K-Electric failed to improve power generation.
(more…)KARACHI: K-Electric, the utility company, has filed a petition to provide relief to its consumers in the electricity bill for the month of November 2022.
A statement on Monday said that the company for the month of November 2022, it filed a petition for a reduction in Fuel Charges Adjustment (FCA) at the rate of PKR 7.04 /kwh (per unit).
NEPRA will conduct a public hearing today over the petition submitted by K-Electric on account of Fuel Charges Adjustments (FCA) for November 2022.
November’s FCA was lower primarily due to a reduction in prices of RLNG, Furnace Oil, and power purchased from CPPA-G by 18 per cent, 15 per cent, and 37 per cent respectively as compared to September 2022.
FCAs are dependent on changes in global prices of fuel and are passed on to consumer bills under the prescribed rules and regulations of NEPRA and the Government of Pakistan.
FCAs are approved by NEPRA after review who also specifies the month during which the charge is applied in consumer bills.
KARACHI: K-Electric, a power utility providing electricity to residential, commercial and industrial consumers of Karachi, is confident of positive outlook despite macroeconomic and geopolitical challenges.
“Despite macroeconomic and geopolitical challenges, KE is confident in serving its customers in a reliable and efficient way through a comprehensive, multi-pronged strategy,” said KE’s Chief Financial Officer Muhammad Aamir Ghaziani at a Corporate Briefing Session held at the Pakistan Stock Exchange (PSX) on November 22, 2022.
READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue
Sustained investments in the value chain have driven continued improvement in KE’s core business. Since privatization, KE has been able to reduce its transmission and distribution losses from approximately 34% to 15% at the end of FY22.
The utility’s transmission and distribution (T&D) losses have reduced by 2 percentage points at the end of the first quarter of FY23 compared to the same period last year, while generation efficiency has also improved by 0.6 percentage points during this time. Investment of around PKR 62.8 billion in FY22 and PKR 11.6 billion in first quarter of FY23 has been made across power value chain.
READ MORE: Faysal Bank, K-Electric collaborate to ease customer’s payment
KE is also preparing itself for the future. The panel shared plans to add up to 500 MW of efficient, clean energy in the short term to diversify the company’s fuel mix and lower the costs of electricity for the company and consumers alike. Simultaneously, construction works of Dhabeji and KKI grids are underway to allow KE to receive additional supply of up to 2050 MW from the National Grid.
On the distribution front, the company intends to enhance its infrastructure and continue its efforts to reduce distribution losses by rolling out Aerial Bundled Cables (ABCs) on its network and implement new and reengineered processes for an improved customer experience.
Speaking at the event, Sadia Dada, Chief Marketing and Communication Officer, also proudly shared KE’s multi-award winning corporate social responsibility strategy, which is driving grassroots development of the communities it operates in.
READ MORE: KE adjusts electricity bills under FCA relief package
The company shared highlights of its efforts including the installation of water filtration plants, renovation of schools and public parks, and setting up of health camps which have collectively benefitted approximately 200,000 persons.
KE’s flagship Roshni Baji Program also completed its 2nd cohort. Collectively 100 women have undergone training as KE’s neighborhood safety ambassadors as well as the country’s first certified female electricians. Collectively, these women have educated over 463,000 households on safe practices for electricity usage, building safer communities.
READ MORE: NEPRA acknowledges KE’s operational performance
Through different other partnerships, women are also being trained in financial literacy, self-defense, motorcycle operations, and CPR training. Continued awareness on safety through public service messaging has reached hundreds of thousands of people across Karachi’s high-risk areas as well.
The briefing also shed light on external factors which affected KE’s financial performance including, demand disruption due to macro-economic factors, receivables from the Government of Pakistan and related entities, devaluation of the Pak rupee resulting in exchange loss, increases in effective rates of borrowing leading to higher finance cost and increases in consumer tariffs which affected customer’s propensity to pay bills resulting in increase in the provision against doubtful debts.
The Company expects some in increase in growth due to shift of captive consumers to grid during the upcoming winter season and is also working diligently on conversion of captive consumers to grid in line with GoP’s policy as well as simplified New Connection process.
Aligned with the mission of brightening lives by building the capacity to deliver uninterrupted, safe and affordable power to Karachiites, KE will continue to make investments across the value chain, enabling the company to improve operationally whilst progressing on the value creation curve through innovation and technological advancements. However, support from government and regulatory authorities remain critical for the execution of the planned investment