ISLAMABAD    -   National Electric Power Regulatory Authority (NEPRA) has decided to hold public hearing in the matter of Authority Proposed Modification (APM) in the Distribution Licence of K-Electric Limited (KEL), after the company conveyed its disagreement to the proposed modification.  

In response to NEPRA’s communication regarding APM in the Distribution Licence of K-Electric Limited (KEL) the company has submitted its comments disagreeing with the APMs, said NEPRA. 

The NEPRA has now decided to hold a public hearing, in the matter of APM in the Distribution Licence of K-Electric Limited (KEL), as stipulated in Regulation-10(6) of the Regulations read with Section-26 of the NEPRA Act on September 21, 2020, said the notification.

The Authority in terms of Regulation 10(1) of the NEPRA Licensing (Application & Modification Procedure) Regulations 1999 (the “Regulations”) communicated an APM to KEL for modification in its distribution licence. The Authority directed KEL to submit its comments in the matter either affirming or denying the communicated APM. A notice seeking comments of the general public and other stakeholders about the APM was also published in the press on September 5-6, 2020 as stipulated in Regulation 10(4)(b) of the Regulations. 

It is worth to mention here that NEPRA is likely to change the terms and condition of K-Electric’s power distribution licence and had last week invited comments from the stakeholders regarding the Authority Proposed Modification (APM). In order to encourage competition for provision of electric power services in Karachi to enhance efficiency, to ensure better price, quality of service, choice for consumers and to regularise resale/distribution of electric power business, it is in the public interest to modify the terms of distribution licence of K-E, said NEPRA.

Pursuant to amendments in the NEPRA Act, the exclusive right to provide distribution services by a licensee has been omitted as stipulated in Section 21 of the NEPRA Act, NEPRA said. Further a new provision i.e. Section 23E has been inserted, which provides electric power supplier licence to make sale/supply of electric power to a consumer. The holders of a distribution licence on the date of coming into effect of the NEPRA Amendment Act are deemed suppliers under Section 23E for a period of five (5) years. The Authority has noticed that K-E has not expanded/upgraded its distribution network and is not fulfilling its obligations to supply electric power to all consumers in its service territory as per terms and condition of existing distribution licence. In view of the said, the consumers of K-E are facing excessive load-shedding, safety hazards, excessive billing and other issues. 

Further, the Authority has also taken notice that several housing societies, industrial estates, shopping plazas/complexes and high rise buildings have set up their own distribution system in the service territory of K-E. 

The K-E is supplying electric power to such entities at one point to further delivery/resale to their residents/occupants. Such an arrangement between these entities and K-E tantamounts to exclusion/surrender of such areas from the service territory of K-E.