NEPRA has taken serious note of relentless and excessive power blackouts exceeding 12 hours a day in Karachi during peak summer. In a letter sent to K-Electric, the country’s only privatised distribution company, the power regulator wants its management to put an end to consumers’ hardship. In addition to causing suffering, it has noted that blackouts of long duration are disrupting economic activity in the nation’s financial and commercial hub. It has sought an explanation from the utility over what it describes as its deteriorating performance across several key parameters, including but not limited to transmission and distribution losses and lower recoveries. The downward trend in KE’s performance undermines the intended goals of its privatisation — ie, “improvements in operational efficiency and ... a reliable, uninterrupted electricity supply to consumers within its service territory”. It says the current situation “raises serious questions about KE’s ability and commitment to fulfil its obligations”. Nepra has attributed the ongoing problems being faced by Karachi residents to the KE’s mismanagement and operational inadequacies.

That the regulator has finally noticed the impact of enforced blackouts on private consumers and businesses is a positive development. In fact, it has finally conceded that feeder shutdowns to control T&D losses or force recoveries is neither legally justifiable nor ethically acceptable, and “unfairly punish compliant consumers and undermine public trust in the utility’s management”. Nevertheless, it is perplexing to see Nepra training its guns only at KE, which is, after all, not the only power utility enforcing ‘illegal’ blackouts in low-recovery, high-theft areas within its jurisdiction. It is stated government policy that is being implemented nationwide, including by public sector utilities for many years now — a practice also being followed by gas companies to minimise their losses. The government-controlled Discos, too, are facing issues related to rising T&D losses and theft due to increased electricity prices. Indeed, in the eyes of many, KE’s performance may have left a lot to be desired since its privatisation. However, the fact that it has reduced T&D losses from 38pc to 20pc through an investment of $4bn in network upgradation while restricting enforced load-shedding to only 30pc of the areas in its jurisdiction is a major accomplishment. Singling it out for enforced blackouts, lower recoveries or T&D losses will only strengthen resistance to the privatisation of other power companies the government is struggling to sell.

Published in Dawn, May 31st, 2025