NEPRA: K-Electric is unable to improve the production of less expensive power.

ISLAMABAD: According to a study by the NEPRA, K-Electric, the only electric distribution firm in Karachi, has not improved the production of affordable renewable energy.

It should be noted that K-Electric was given a 20-year distribution and supply licence by the National Electric Power Regulatory Authority (NEPRA) in January.

Details of the NEPRA’s review report on power plants’ 2022–2023 performance are now available.

The regulator claimed that K-Electric “has failed to enhance production of cheaper renewable energy and has continued its dependence on expensive electricity generation.”

K-Electric’s insistence on electricity generation from costly sources was noted by the NEPRA, who declared the power utility’s low-cost power generation from renewable sources to be unsatisfactory.

According to the research, K-Electric only generates 2.4% of its electricity from renewable sources.

The research states that “installing renewable energy plants has been repeatedly advised to bring the generation costs down with improvement in power generation mix.”

The regulatory body stated, “K-Electric repeatedly contacted and insisted on the addition of expensive power plants.”

The previous 20-year licence held by K-electric expired in July 2023. Prior to the reform of the electricity market, the corporation had applied for non-exclusive distribution and supply licences for the ensuing twenty years.

Following that, K-Electric was given a provisional six-month extension by NEPRA. Later in January, the firm was awarded a 20-year distribution and supply licence.