K-Electric penalised for failure to comply performance standards

KARACHI: NEPRA has imposed a fine of Rs2 million on K-Electric for non-compliance of performance standards, particularly failure to restore the power supply within the prescribed time frame and ensure the safety of public in Karachi.
In view of the poor state of affairs on part of K-Electric in June last year and onwards, the authority decided to initiate legal proceedings. After due process of law, the authority passed the final order and observed that Karachi suffered prolonged unscheduled electricity outages for more than twenty four (24) hours in different areas of Karachi on June 28, 2017 and onwards.
“Weak and fragile distribution network was the major reason for such unscheduled power cuts which could not withstand few millimetres rain and K-Electric failed to resume the power supply within prescribed time period,” NEPRA noted.
Authority further observed with concern that people were electrocuted and died due to poor maintenance of distribution network by the K-Electric. “This indicates that KE’s network is full of safety hazards and there is no mechanism to develop safety culture and rectify safety hazards so that public lives can be saved during such emergency situations,” it said.
Responding to NEPRA’s decision, K-Electric spokesperson said the power utility will approach the regulatory authority for review.
Since 2009, K-Electric has invested over $2 billion to improve Karachi’s power infrastructure and enhance the quality of services for its customers. Major initiatives include exempting over 70% of Karachi from load shedding, including all industrial consumers and strategic installations. Further, T&D losses have been brought down from 36% to 20%, along with capacity addition of 1,057 MW to K-Electric’s own generation. In addition, through continued investments, Transmission & Distribution capacity has been enhanced by around 29% and 63% respectively since 2009. This all has been achieved without distributing any dividends to shareholders from declared profits and, instead, routing this towards developing infrastructure.
Further, to accommodate the growing power demand of the city, KE has planned investments across the value chain. Additionally, KE is also evaluating another 250 MWs of renewable projects to further increase the share of renewable energy based on solar, wind and biogas, in its system. The power utility remains fully committed to its vision statement of ‘Energizing Karachi’ while serving over 25 million people of Karachi and its adjoining areas.

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