18 Sep, 2020 05:30 am

Nepra asks KE to find alternatives to tariff hike for investment

Nepra asks KE to find alternatives to tariff hike for investment
ISLAMABAD: The National Electric Power Regulatory Authority on Thursday sought details from K-Electric of its contractors, asking it to find fund avenues other than tariff hike for capital...

Interveners from Karachi strongly criticised KE for load shedding and questioned why licence of KE should not be cancelled despite reports of poor performance.6 million people in Karachi who were facing 9-hour load shedding.KE authorities admitted that there was nine hours load shedding in Karachi.KE officials informed Nepra that the company has invested around Rs29 billion over and above what Nepra allowed in the generation and distribution, which has resulted in significant improvements in generation fleet reliability and availability, including efficiency improvements passed on to consumers along with significant improvements at consumer level, which includes reduction in load-shedding with over 75 percent of the feeders exempted from load shedding.

“In addition to the impact of rupee devaluation from Rs121/$ to Rs155/$, there have been added costs resulting from adjustments to the approved investment plan because of changing operational dynamics and increasing working capital requirements and financing costs on account of burgeoning government outstanding, all of which are beyond the control of the power utility,” he said.“This would enable the power utility to make 93 percent of Karachi free from load-shed by the year 2023,” said the official.

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