Karachi – In a significant move, Monis Alvi, the Chief Executive Officer (CEO) of K-Electric, has welcomed the potential entry of other electricity distribution companies into Karachi’s power sector. Speaking at the Korangi Association of Trade and Industry (KATI), Alvi emphasized that competition in the electricity distribution market could lead to improved performance and allow for better evaluation of service quality. He also advocated for the expansion of K-Electric’s operations beyond Karachi, suggesting the company should be allowed to serve other cities across Pakistan.
K-Electric Advocates Against Power Holding Limited (PHL) Charges
During the KATI meeting, which brought together key industrial leaders, Alvi reiterated K-Electric’s ongoing efforts to oppose the imposition of Power Holding Limited (PHL) charges on electricity bills. He highlighted that K-Electric is actively lobbying against these additional costs on various platforms, including the National Electric Power Regulatory Authority (NEPRA). Despite not being involved in the country’s circular debt, Karachi’s consumers are forced to bear these surcharges, an issue K-Electric is striving to resolve in collaboration with the local business community.
Expansion Plans and Performance Highlights
Monis Alvi took the opportunity to discuss K-Electric’s achievements in net metering, asserting that the company’s performance in this area is among the best in Pakistan. However, delays in the delivery of metering equipment, caused by recent typhoon threats, have affected the timeline for new installations. In response, K-Electric has requested NEPRA to allow consumers to install meters that meet the company’s standards. Furthermore, Alvi announced that the process for new connections and name changes has now been fully digitized, making it more convenient for consumers to access these services online.
Addressing Industrial Power Needs and Infrastructure Development
KATI President Johar Qandhari acknowledged the significant role K-Electric plays in supplying electricity to Karachi’s industrial sector. He commended the company’s recent investments, including a PKR 3 billion allocation towards improving the city’s power infrastructure. However, Qandhari also pointed out areas where K-Electric needs to focus, such as addressing delays in new connections and maintenance issues, which are hindering industrial growth.
Qandhari specifically highlighted the Korangi Industrial Zone, the largest industrial area in Pakistan with a sanctioned power load of 600 MW. He noted that while K-Electric has been working to support the zone’s power needs, there is an urgent need to resolve ongoing power outage problems, particularly during the summer months. The frequent power disruptions and delays in connecting new industrial units are slowing down production and negatively impacting business operations.
Tackling High Electricity Tariffs
One of the major concerns raised during the meeting was the escalating electricity costs for Karachi’s industries. Rehan Javed, Vice Chairman of KATI’s Standing Committee, pointed out that the current rate of PKR 50 to 60 per unit is unsustainable for businesses. He emphasized the need for uninterrupted power supply at more affordable rates to sustain industrial growth and maintain competitive production levels.
Both Qandhari and Javed stressed that additional tariffs, including PHL charges amounting to approximately PKR 5 per unit, are placing an unnecessary burden on Karachi’s consumers, despite the fact that they are not responsible for the country’s circular debt. These charges, they argued, should be removed to alleviate financial pressure on industries and consumers alike.
The Role of Renewable Energy in Reducing Costs
To address the city’s high electricity tariffs and improve power reliability, Qandhari proposed integrating renewable energy projects, such as solar and hydropower, into Karachi’s electricity grid. He noted that leveraging renewable energy sources could help lower costs, reduce the city’s reliance on expensive fuel-based power generation, and offer more sustainable electricity options for the city’s growing industrial sector.
Support for a Competitive Electricity Market in Karachi
Qandhari also voiced his support for allowing other electricity distribution companies (DISCOS) to enter Karachi’s market. He suggested that increased competition in the electricity distribution sector would not only improve service quality but also drive down costs, benefiting consumers in the long run. According to Qandhari, competition would encourage all players in the market to innovate and offer better solutions to meet the power demands of both the industrial and residential sectors.
Conclusion: A Call for Collaboration
In conclusion, Monis Alvi urged Karachi’s business community to collaborate with K-Electric in advocating for the removal of unnecessary charges and promoting a more competitive and efficient electricity market. He emphasized the importance of working together with the government, Ministry of Energy, and NEPRA to address these critical issues, which have a direct impact on the city’s economic development and the well-being of its residents.
As Karachi continues to grapple with power outages, high tariffs, and delays in new connections, the entry of other electricity providers could offer a much-needed boost to the city’s energy sector. Alvi’s openness to competition, combined with K-Electric’s ongoing efforts to enhance its infrastructure and services, may pave the way for a more reliable and affordable electricity supply in the near future.