ISLAMABAD: Taking serious notice of alleged excessive and persistent loadshedding during peak summers, the National Electric Power Regulatory Authority (Nepra) has directed K-Electric to end the consumers’ miseries and not dent public trust in privatisation.

In a letter to the Chief Executive Officer of K-Electric, the regulator stated that it had received a large number of complaints regarding persistent and excessive loadshedding across various areas of Karachi.

“In several localities, electricity outages have reportedly exceeded 12 hours per day, with individual spells ranging between 2.5 to 3 hours. These extended power disruptions have severely affected the lives of residents, particularly during the ongoing extreme summer heat”, Nepra said.

On the one hand, the regulator noted that the situation was exacerbating the hardships faced by the citizens of Pakistan’s largest commercial hub, and on the other, it was contributing to deteriorating law and order conditions and triggering adverse behavioral shifts within the population. Beyond the immense suffering of ordinary people, the persistent loadshedding is also causing serious disruptions to commercial operations and economic activity in the city.

Based on the complaints received and statistical data available with Nepra, it had been observed that “the overall performance of K-Electric is deteriorating across several key parameters, including but not limited to transmission and distribution (T&D) losses and recovery percentage”, Nepra said, adding that of particular concern was the decline in loadshedding-free areas previously reported by K-Electric as approximately 76pc, now reduced to just 70pc — a figure notably lower than that of several public sector distribution companies (Discos).

Believes loadshedding hampering economy, worsening law and order

The regulator emphasised that “one of the primary objectives of K-Electric’s privatisation was to ensure measurable improvements in operational efficiency and to provide reliable, uninterrupted electricity supply to consumers within its service territory. The current downward trend in performance undermines the intended goals of privatisation and raises serious questions about K-Electric’s ability and commitment to fulfil its obligations”.

It also highlighted that over time, K-Electric had increasingly relied on power procured from the NTDC system, which was significantly more economical than its generation sources. This shift has led to a substantial reduction in K-Electric’s overall fuel cost component.

However, despite this cost advantage, KE has failed to translate the benefit into any tangible relief for its consumers, particularly in terms of continuous electric supply to its consumers, which is a clear reflection of poor operational and strategic performance.

Nepra stated that the NTDC could supply up to 1,600MW of electricity to KE at significantly lower rates. However, it had been observed that K-Electric was not fully utilising this available capacity. “Instead, the utility continues to implement extended loadshedding, depriving consumers of the cheaper electricity readily accessible through NTDC.” This approach is not only inefficient but is also adversely impacting all stakeholders and consumers, the economy, and the broader power sector.

This ongoing hardship faced by residents within KE’s service territory is, therefore, directly attributable to the utility’s continued mismanagement and operational shortcomings. Moreover, the KE was operating some of its generation plants at part load while simultaneously enforcing load shedding. “This practice compromises fuel efficiency and results in higher generation costs, including part-load adjustment charges, which are ultimately passed on to consumers — penalising them further despite the availability of generating capacity,” Nepra noted, adding that this reflected not only poor operational planning but also a disregard for consumer welfare.

It said the core responsibility of all distribution companies, including KE, was to reduce transmission and distribution (T&D) losses and enhance recovery percentage through effective management, modern controls, and operational efficiency. These objectives are already accounted for in the company’s allowed revenue requirement.

“However, resorting to feeder shutdowns as a means to control T&D losses or force recoveries is neither legally justifiable nor ethically acceptable. Such practices unfairly punish compliant consumers and undermine public trust in the utility’s management”, the regulator said.

Published in Dawn, May 30th, 2025