Power Regulator pressurizes KE management to supply power in high loss areas

ISLAMABAD: One of the Members of National Electric Power Regulatory Authority (NEPRA) on Thursday pressurized K-Electric (KE) to continue electricity supply in Karachi’s those areas where people are involved in theft and Kundas( hooks) and all efforts made to discourage this menace have proved unsuccessful.
The unpleasant exchange occurred during a public hearing on KE’s Fuel Charges Adjustment (FCA) request for March 2025. KE had proposed to refund Rs 6.792 billion to consumers due to a negative FCA; however, after accounting for a pending adjustment of approximately Rs 3 billion—relating to partial load, open cycle operations, degradation curves, and startup costs—the net refund would amount to Rs 3.8 billion. NEPRA is expected to approve a negative adjustment of Rs 3.50 per unit for March 2025.
The hearing was officiated by NEPRA Chairman Waseem Mukhtar and other members of the Authority.
Tensions flared when NEPRA Member (Technical), Rafique Ahmad Shaikh, expressed frustration with KE’s CEO, Syed Moonis Abdullah Alvi, over ongoing load shedding in theft-prone areas. Shaikh argued that the company should not cut off power to entire localities, even where theft is rampant, and labeled KE’s approach as ineffective and lacking accountability.
In response, KE’s CEO defended the utility’s actions, stating that KE staff face physical threats and attacks—even in the presence of law enforcement—when attempting to disconnect illegal connections or collect dues.
“Our teams are attacked when disconnecting power. In some cases, employees have been taken hostage—even with police present. Load shedding is often the result of disconnection drives in those areas,” Alvi said.
However, Member Shaikh, who also represents the Sindh government and resides in Karachi, dismissed these explanations.
“Are you saying power is disconnected for only three hours and then restored? Why is there no load shedding in the winter months? Your responses do not reflect the reality in Karachi,” he remarked, adding that KE’s distribution system is in poor condition and the information presented during the hearing is far from the ground reality.
Alvi urged NEPRA to issue a public appeal encouraging Karachi residents to pay their electricity bills in order to avoid service disconnections. Shaikh, however, criticized the proposal as “childish,” asserting that the utility must take responsibility for improving service and enforcing payment compliance.
Insiders revealed that Member Shaikh is expected to file an additional note on the matter, which will be attached to NEPRA’s final determination.
Fuel charge adjustments are typically made by power utilities to reflect fluctuations in global fuel prices and changes in the energy generation mix. These are reviewed by NEPRA and, when applicable, passed on to consumers. When fuel costs drop, negative FCAs result in a refund or lower bills for consumers.
KE also highlighted adjustments related to partial load operation, degradation, and startup costs based on post-June 2023 determinations for its power plants. The utility has requested NEPRA to allow recovery of these costs from the current negative FCA, so consumers are not burdened at a later stage.
According to NEPRA’s ruling, the negative FCA for March 2025 will apply to all consumer categories except lifeline consumers, protected domestic consumers, Electric Vehicle Charging Stations (EVCS), and all prepaid consumers who opted for prepaid tariffs.
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