Tag: K-Electric

  • Shanghai Electric submits fresh intention to acquire 66.4pc K-Electric shares

    Shanghai Electric submits fresh intention to acquire 66.4pc K-Electric shares

    KARACHI: K-Electric on Tuesday said that it has received fresh Public Announcement of Intention (PAI) from Shanghai Electric Power (SEP) Company Limited (SEP) to acquire up to 66.40 percent voting shares of K-Electric Limited, subject to receipt of regulatory and other approvals.

    This PAI has been notified to the K-Electric Board of Directors on 30 June 2020.

    A copy of the said PAI and disclosure form are enclosed. The SECP and PSX are requested to make the above information immediately available to the shareholders of K-Electric under regulation 5(1) of Takeover Regulation 2017 by placing it on the notice board and through notification on automated information system and make an announcement on the house of the Exchange.

    SEP was established in 1882 and then transformed into a limited company in 1998.With a long history of 138 years, SEP is one of the major electric energy companies in Shanghai and is also a publicly-traded company listed on Shanghai Stock Exchange under ticker 600021.

    It is principally engaged in the development and construction of electricity, as well as its operation and management business.

    For the financial year ended December 31, 2019, SEP recorded an annual net profit of RMB2.0billion (US$289.7million) and an annual power generation of 48.66TWh.

    As of December 31,2019, SEP has an overall installed capacity of 15.8GW, with contributions of 53.92%, 15.16%, 13.58%, and 17.34% from coal power, natural gas power, wind power, and solar power respectively.

  • KCCI urges K-Electric to stop load shedding

    KCCI urges K-Electric to stop load shedding

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has expressed serious concerns of electricity shortfall which caused massive losses to trade and industry.

    Agha Shahab Ahmed Khan, President KCCI urged the K-Electric to immediately stop the ongoing load shedding spell and focus on improving the infrastructure, particularly power generation capacity and distribution network which is in a terrible state.

    In a statement issued, Agha Shahab pointed out that due to K-Electric’s poor performance, almost all the localities of Karachi and also the seven industrial zones have to suffer unannounced load shedding and power failures every day for many hours that results in substantial losses.

    “The industries have suffered badly due to the outbreak of coronavirus and the subsequent lockdown for more than two months and now, K-Electric has also resorted to massive load shedding, which poses threat to the already staked survival of industries,” he said and asked ‘What is the motive behind carrying out immense load shedding in an extraordinary situation?’

    “The unannounced and prolonged load shedding by K-Electric would prove to be the last nail in the coffin of industries and the economy”, he opined and added that People from different walks of life, who have been inhabiting in various localities, sought KCCI’s assistance to exert pressure on K-Electric’s management so that uninterrupted power supply in every area could be ensured.

    He stressed that K-Electric must adopt measures on war footing to minimize the hardships being suffered by the citizens and the business community of the largest city of Pakistan which contributes a lion’s share of more than 70 percent revenue to the national exchequer. Karachiites are already under tremendous mental pressure due to coronavirus pandemic and their sufferings multiply further when they have to go through prolonged load shedding every day and night.

    President KCCI said that K-Electric has been earning huge profits of billions of rupees every year but unfortunately, it has not been adequately investing on improving the dilapidated distribution network which was in a very bad shape as every year whenever the electricity demand shoots up in the city during summer season, K-Electric fails to deal with the situation and the public pays the price for this failure in shape of load shedding.

    Agha Shahab further advised that as Monsoon season is just ahead and heavy rainfalls have been forecasted by the Metrological Department, K-Electric must act sensibly and responsibly, avoid repeating mistakes and adopt stringent measures to ensure uninterrupted and safe power supply during the rainy season. “Dozens of people were electrocuted during last year’s Monsoon season and the same situation may happen this year as well because no safety measures have been adopted so far hence K-Electric’s management must take up this matter on priority and devise effectively strategies to save precious lives in case the city undergoes torrential rains”, he added.

    Agha Shahab requested Prime Minister Imran Khan, Governor Sindh Imran Ismail, Chief Minister Sindh Murad Ali Shah and other concerned ministers at the Federal and Provincial levels to review the situation and issue strict directives to K-Electric to improve its infrastructure and ensure uninterrupted power supply to public and also the business and industrial community who are already suffering terribly because of the outbreak of coronavirus pandemic.

  • Shanghai Electric allows to make offer for K-Electric till June 26

    Shanghai Electric allows to make offer for K-Electric till June 26

    KARACHI: Securities and Exchange Commission of Pakistan (SECP) has granted extension of 90 days to make public announcement of offer by Shanghai Electric Power Company Limited to acquire shares of K-Electric.

    In an announcement on Monday, K-Electric with reference to the public announcement to acquire 66.4 percent shares of K-Electric Limited made by the acquirer on September 30, 2019, Arif Habib Limited is acting in the capacity of Manager to the Offer for the acquisition.

    As part of the acquisition process, the acquirer had requested an extension of 90 days in making public announcement of offer which was to be made by March 28, 2020 as per the law.

    In this regard SECP granted extension of 90 days up to June 26, 2020.

  • Law allows fuel adjustment charges only for two months

    Law allows fuel adjustment charges only for two months

    KARACHI: Industry has raised questions over decision by National Electric Power Regulatory Authority (NEPRA) to allow past four years fuel adjustment charges to K-Electric.

    In a joint statement the leaders of North Karachi Association of Trade & Industry (NKATI) on Wednesday said that according to the law the distribution company not allowed to collect fuel adjustment charges for more than two months, but on the contrary, NEPRA has allowed to K-Electric for collecting four-year fuel adjustment charges which is a gross violation of the law.

    They said that NEPRA’s move is a conspiracy against businesses as the products that was exported four years ago can how cover the cost of fuel adjustment now.

    According to NEPRA’s notification, the amount will be charged from January 2020 to September 2020 in electricity bills.

    Capt. A Moiz Khan, patron in chief, NKATI and Nasim Akhtar, president, has strongly opposed the NEPRA to receive 4-year fuel adjustment charges from industries and refused to accept this decision.

    In an appeal to Arif Alvi, President of Pakistan, Imran Khan, Prime Minister, Power Minister and Chairman NEPRA, said that the permission to collect fuel adjustment charges to K Electric for the period from July 2016 to June 2019 should be canceled immediately or else industries will be destroyed.

    Capt. Moiz Khan and Naseem Akhtar said that business community of Karachi are already badly affected due to high doing business cost, while electricity tariffs have also been raised, huge taxes and in the current economic situation it extremely difficult to run industries, as industrial wheel is almost jammed due to over-production costs, especially the SME sector will be ruined and even the remnants of exports will be completely closed.

    They expressed concern that due to of such measures, industries will be defaulted and Government will be responsible.

    Nkati’s leaders urged to President and Prime Minister to immediately cancel K Electric’s permission to collect 4-year fuel adjustment charges and measures should be taken to protect industries from destruction, otherwise the industries will be locked up, which will lead to unemployment and worsening financial crisis. It will also have a very negative impact on exports so such decisions should be avoided.

  • K-Electric warns of crisis on non-payment of dues by Sindh departments

    K-Electric warns of crisis on non-payment of dues by Sindh departments

    KARACHI: K-Electric – the power generation and distribution company – has demanded the Sindh government to pay the dues on urgent basis as non-payment will result into potential crisis for Karachi city.

    In a letter to Sindh Chief Minister Syed Murad Ali Shah the power utility requested for support in expediting the release of outstanding dues of different department of the provincial government.

    The K-Electric said it was facing severe cashflow issues due to the non-payment of dues by the government of Sindh. The company is working tirelessly to manage its routine operations and maintainance along with the purchase of power for the smooth functioning of the operations and to supply safe and reliable power to Karachi and its adjoining area.

    “However, this has been communicated to your office time and again that with large amount pending in the form of receivable from the government departments, KE is facing severe constraints in running its day to day operations and ensuring seamless supply of power to the city.”

    The power utility said that its receivable from different departments of the Sindh government had increased to Rs19.2 billion, of which Rs4.5 billion had been reconciled.

    In addition, Rs33.09 billion is also receivable on account of KW&SB out of which Rs28.5 billion in dues have been fully reconciled.

    In its summary to the Supreme Court of Pakistan, the Sindh government agreed to devise a payment plan for the reconciled amount, which was also made part of the apex court’s order.

    However, there have been notable delays in the payment against the mentioned reconciled amount and a payment plan is still awaited.

    As a result, K-Electric’s borrowing has increased substantially, and the situation is not sustainable for the company. Moreover, the capacity of banks to finance KE has been exhausted, inadvertently effecting KE’s working capital and long-term expansion plan.

    The KE said that it was not a defaulter of current payments to any of its fuel suppliers since 2012, despite the cashflow situation. However, to be able to continue to make payments to the suppliers and ensure smooth operations, it is essential that the release of outstanding dues is expedited.

    “… the non-payment of these dues will result into potential crisis for the city and the sustainability of KE’s operations,” it said.

  • K-Electric awards contract to set up 900MW power plant

    K-Electric awards contract to set up 900MW power plant

    KARACHI: K-Electric – power generation, transmission and distribution company – has awarded a contract to establish 900MW power plant with estimated cost of around $425 million, an announcement said on Thursday.

    According to information shared with Pakistan Stock Exchange (PSX) the power company said that the board of directors at its emergent meeting held on September 25, 2019 approved award of EPC contract to Siemens – Harbin consortium to establish 900MW combined cycle power plant at Bin Qasim.

    The estimated contract value would be around $425 million.

    The project will be executed on fast track and additional power will be available in summer 2021.

    The project will positively contribute to bridge electricity demand-supply deficit in KE service area, the company said.

  • K-Electric, NIP sign MoU for enhancing supply for BQIP

    K-Electric, NIP sign MoU for enhancing supply for BQIP

    KARACHI: K-Electric and National Industrial Park (NIP) on Wednesday signed an MoU to ensure meeting electricity demands at Bin Qasim Industrial Park (BQIP).

    Under the MoU, KE will immediately start work on laying four 11KV feeder lines of 4-4.5 MW for the industrial units under construction and will ensure supply of needed electricity before they go into full production.

    A statement said that the current government is focusing on creating enabling environment for the businesses to grow and contribute in the economic development in the country.

    Special drive has been started by the Prime Minister’s Advisor on Commerce, Textile, Industries & Production and Investment Abdul Razak Dawood to address the chronic issues in the Industrial Zones of the country so that the business could grow and flourish in these zones.

    Bin Qasim Industrial Park (BQIP) is a 950 Acre Special Economic Zone situated on the Pakistan Steel land.

    It is a project of National industrial Parks Development and Management Company, a wholly-owned entity of Ministry of Industries & Production, Government of Pakistan. Currently, BQIP has only one 11KV feeder line of 4MW load capacity coming from K-Electric Pinri Grid station, which is currently unable to cater the needs of growing number of industrial units.

    Lately, four of the zone enterprises which are expected to come into full production capacity in the next 2-3 months showed their serious concerns on the inability of the Special Economic Zone to fulfill their immediate electricity needs of approximately 17MW.

    At the direction of the Advisor, Mr. Dawood KE authorities were engaged to find an immediate solution. NIP and KE have jointly come up with a short and long-term solutions to meet the electricity needs of the BQIP (SEZ) enterprises.

    Investors of the zone enterprises were also present at the signing ceremony and expressed their profound gratitude to Razak Dawood for his timely intervention and support to make it happen as it’s in larger interest of the country.

    They viewed that such measures are expected to attract more investment in the industrial Zones of the country.

  • Ikram Sehgal appointed as K-Electric new chairman

    Ikram Sehgal appointed as K-Electric new chairman

    The board of directors of K-Electric announced the appointment of Ikram Sehgal as Director and Chairman of the company. This decision comes following the cessation of Muhammad Tayyab Tareen’s role as Director and Chairman, effective January 18, 2019.

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