KE replies to NEPRA's Integrated Multi-Year Tariff Determination

By
Riaz Andy
|
KE replies to NEPRA's Integrated Multi-Year Tariff Determination

KE normally keeps media at an arm length but on Integrated Multi-Year Tariff Determination, it chose to come out and share observations.

The company has stated on record that current determination includes no incentive to continue as investing in improving power supply, which will eventually lead to widening the demand supply gap, further adding that the move will result in cash flow and sustainability issue for the company.

In its press release, KE said that the power utility becomes a viable entity after 17 years of heavy losses due to significant investment made by the company supported by the previous performance-based tariff structure which was positive for both the consumers and the company.

“The previous multi-year tariff was a performance based tariff model which encouraged KE to reduce losses and improve its supply and services to the population it serves.”

“Under the previous tariff model, the power utility has invested USD 1.2 Billion into its network to enhance its Generation and improving its Transmission and Distribution infrastructure that enabled KE to bring T&D Losses down from 36% in 2009 to under 22% in 2016.”

It added, “This resulted in exemption of over 61% of Karachi from load-shed and provision of uninterrupted power supply to all industrial zones,” further stating, “The new I-MYT derails the huge progress made by the company and jeopardises the Business Plan. Out here the company is perhaps talking about Shanghai deal, which she thinks is in jeopardy.”