Alvi stresses need for firm commitment from NTDC before investment on additional grid connections

ISLAMABAD: The Chief Executive Officer (CEO) of K-Electric (KE), Syed Moonis Abdullah Alvi, stated on Thursday that additional interconnections with the national grid would only be viable if there is a firm commitment for increased supply from NTDC.
He made these remarks during a public hearing on KE’s request for a Fuel Cost Adjustment (FCA) for January 2025, which could potentially benefit consumers by approximately Rs 4.695 billion. KE has proposed a negative FCA of Rs 4.84 per unit during its monthly hearing with the National Electric Power Regulatory Authority (NEPRA).
In its application, KE mentioned that Rs 13.5 billion remains pending for the period from July 2023 to January 2025. Of this amount, NEPRA has already set aside Rs 7.4 billion in decisions for November and December 2024. KE is now seeking adjustments for the remaining Rs 6.10 billion.
During the hearing, stakeholders called for passing the full benefit of the FCA adjustment on to consumers. However, KE emphasized that a partial adjustment was necessary to cover accumulated costs related to partial load charges, open-cycle operations, degradation curves, and startup costs.
KE also noted that these costs might require further adjustments during peak summer months, as the company aims to prevent excessive financial burdens on consumers when electricity consumption and bills typically rise.
NEPRA officials and KE also discussed NTDC’s ongoing efforts to enhance transmission capacity, which is expected to enable the transfer of over 2,000 MW to Karachi. A 500 kV circuit is under commissioning and is expected to be completed by mid-2025.
In this context, KE’s CEO, Moonis Alvi, reiterated that additional connections would only be feasible with a firm commitment from NTDC to increase supply. “NTDC will supply 1,200 MW to KE on a firm basis, with an additional 1,000 MW subject to availability,” he added.
Stakeholders again emphasized the need for verifying cost claims before approval, with NEPRA stressing that only audited numbers would be considered for decision-making.
KE also attributed the decline in consumption and demand to cold weather and the rise in rooftop solar adoption. The company suggested that the planned shift of captive power plants to the grid could help stimulate industrial demand.
Addressing questions about the reliance on the national grid, KE’s Chief Generation & Transmission Officer, Abbas Hussain, pointed out that generation peaks reached between 2,200 MW to 2,400 MW during the month, underscoring the need for KE’s own generation capacity to meet demand beyond NTDC’s supply.
With Karachi’s consumers continuing to benefit from negative FCAs, today’s hearing highlighted the ongoing challenges and regulatory measures shaping the future of the city’s power sector. NEPRA reaffirmed that cost verifications would remain a top priority, and only verified claims would be passed on to consumers. NEPRA has reserved its decision and will issue its verdict after reviewing the data and submissions presented by KE during the hearing.
Ends