The National Electric Power Regulatory Authority (NEPRA) has decided to provisionally allow renewal in the term of Distribution Licence of Karachi Electric Limited (KEL) for a period of six months from July 20, 2023 or till the final determination of the Authority in the matter is made whichever is earlier.
The decision was taken in the public interest and to ensure uninterrupted supply of electric power to the consumers in the Service and Concessional Territories of KEL, while the application of KEL for renewal in the term of its Distribution Licence is under process.
However, the provisional renewal is subject to certain conditions, such as:
– KEL shall not have any exclusivity for the provision of Distribution and/or Electric Power Supply services and the Authority shall reserve its right to issue other Licenses in its Service/Concessional Territories;
– The provisions of Article-7 of the Distribution Licence of KEL pertaining to the “Exclusivity”, will not be applicable anymore as Section-21 of the amended NEPRA Act does not allow the same;
– KEL will be obligated to allow Bulk Power Consumer(s)-BPC(s) to obtain the supply from any generation company as stipulated in Section-22 of the amended NEPRA Act;
– The Service and Concessional Territories of KEL will be strictly governed in terms of Article-3 of its existing Distribution Licence; and
– KEL will be obligated to allow use of its system to any third party for supplying/wheeling of electric power to any BPC in terms of Article-9 of its Distribution Licence.
All other terms and conditions of Distribution Licence of KEL shall apply mutatis mutandis to the extent not in consistent with the provisions of the NEPRA Act as amended up-to-date and the above conditions. Further to the above, KEL shall comply with all relevant determinations, directions of the Authority as may be issued from time to time. The Authority directs KEL to continue to perform its functions pertaining to the Distribution and Supplier subject to the above mentioned conditions to be followed in true letter and spirit.