Opposition Mounts Against KElectric License Renewal for Electricity upply

Kelectric - NEPRA

Opposition Mounts Against KElectric License Renewal for Electricity upply

Karachi, November 20, 2023 – In a contentious development, a wave of dissent has surged from electricity consumers, industrialists, and business organizations against the renewal of the license for distribution and supply of electricity by KElectric, submitted to the National Electric Power Regulatory Authority (NEPRA).

The opposition gained momentum as KElectric consumers voiced their concerns, urging NEPRA to reconsider the renewal of KElectric’s license. A crucial hearing on the matter is scheduled for November 28, where NEPRA will scrutinize KElectric’s application in light of the widespread disapproval.

NEPRA had previously invited feedback from stakeholders, prompting KElectric consumers to propose that the electricity license for Karachi should be awarded to an alternative company. Critics argue that KElectric has long grappled with incompetence and poor performance, necessitating a shift in responsibility to a more capable entity.

The Association of Builders and Developers (ABAD) echoed the sentiment, emphasizing the need for diversification in the sector. ABAD asserted that granting licenses to more distribution companies in Karachi would alleviate longstanding issues tied to KElectric’s performance.

All City Traders Etihad Association joined the chorus of dissent, advocating for the distribution of electricity licenses to multiple companies in Karachi. They argued that a competitive market would not only benefit consumers but also foster improved service quality.

The Landhi Association of Trade and Industry called on NEPRA to conduct a thorough review of KElectric’s application, suggesting a meticulous evaluation of the Karachi Electric Supply Company’s track record.

The Deliver Karachi Forum, representing a majority of e-Karaq users, added their voice to the opposition, demanding NEPRA to consider licenses for new companies in order to introduce much-needed competition and enhance consumer options.

District Municipal Corporation Malir concurred with the call for increased competition in the electricity sector, emphasizing that it would inevitably lead to service improvement.

It’s worth noting that KElectric’s 20-year license period expired in July 2023, prompting NEPRA to extend the license by six months. As the contentious renewal process unfolds, the electricity landscape in Karachi remains a focal point of debate and deliberation among stakeholders and regulatory bodies alike.