ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has issued a show cause notice to K-Electric (KE) for failing to comply with its instructions regarding forced load shedding, which is permissible under federal government policy.
The notice, dated June 23, 2025, coincided with the Power Division’s decision to block a relief of Rs 4.69 per unit for Karachi consumers under the April 2025 Fuel Cost Adjustment (FCA) mechanism.
According to NEPRA, distribution companies are required to maintain plans and schedules to shed up to 30% of their connected load at any time upon instructions from the National Transmission and Despatch Company (NTDC). This load must be divided into separate, switchable blocks that can be disconnected as directed by NTDC. Copies of these plans must be shared with NTDC.
NEPRA emphasized that NTDC, where possible, should provide distribution companies with advance warning of impending load shedding to help maintain system voltage and frequency in line with the Grid Code. NTDC is also responsible for instructing distribution companies on the specific amount of load to be disconnected and the timing, using clear and unambiguous communication based on the approved plans.
Previously, on January 8, 2025, NEPRA issued an Explanation to KE under Regulations 4(1) and 4(2) of the NEPRA (Fine) Regulations, 2021, citing non-compliance with its directives.
The regulator stated that KE has been implementing load shedding based on Aggregate Technical & Commercial (AT&C) losses, which violates the NEPRA Act and the Performance Standards (Distribution) Rules, 2005. In this practice, entire feeders with commercial losses—such as electricity theft and non-payment—are shut down for hours, even when some consumers on those feeders are fully compliant and regularly pay their bills. NEPRA considers this unfair to compliant consumers.
In response to this practice, the Authority initiated and concluded legal proceedings, resulting in a Rs 50 million penalty on KE. NEPRA continues to stress that load shedding should only be carried out at the Pole Mounted Transformer (PMT) level, and only when absolutely necessary—such as in the case of generation shortages or transmission constraints, and only under instructions from system operators.
Meanwhile, KE launched a project in 2021 to install Advanced Metering Infrastructure (AMI) and Automated Meter Reading (AMR) meters at the distribution transformer level, costing Rs 600 million. The project aimed to identify energy losses due to theft and non-payment, and to facilitate commercial benefits. KE also claimed that these meters would enable remote connection and disconnection at the transformer level. The project was completed in December 2021, with a test run conducted through June 2022.
NEPRA reviewed project records, reports, and KE’s submissions and found that, while KE has reaped commercial benefits from the AMI/AMR system, it has not utilized the technology to provide relief to consumers by performing targeted load shedding at the PMT level, despite the capability to do so.
Furthermore, during public hearings on the monthly FCA, Karachi residents widely complained about excessive and unfair load shedding, reinforcing NEPRA’s concerns.
Power Minister, Sardar Awais Leghari time and again stated that forced load shedding would continue in high losses making areas of Discos.
KE spokesperson, regarding NEPRA’s show cause notice, stated: “KE is currently reviewing the show-cause notice received from NEPRA Authority. After a comprehensive review, we will submit our response in line with the timeframe set by the authority.”
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