Islamabad: The National Electric Power Regulatory Authority (Nepra) on Thursday provisionally renewed K-Electric’s (KE) distribution license for six months.
The electric utility company said in a statement that K-Electric has been informed of the decision regarding the expansion.
“K-Electric’s license period of 20 years is expiring today and a decision on renewal of the license will be taken after a public hearing,” Nepra said.
Nepra also said that the power supply company had applied for renewal of the license for 20 years, however, it has been given a temporary extension of six months.
In February, KE CEO Syed Moonis Abdullah Alvi said that the company had applied for a non-exclusive distribution license as its current distribution exclusivity was set to expire in June this year.
The request for power distribution unbundling will end KE’s monopoly in Karachi and other market players may be attracted to invest.
Alvi had said, “KE wanted to work in a competitive environment with other power sector market players instead of having a monopoly distribution license on its own.”
He was of the view that Pakistan would have to move towards indigenous sources of power generation in future.
“We must ensure that the next generation is converted to indigenous fuel as it is not in our interest to buy expensive fuel for which all stakeholders will have to contribute.
He further said, before the summer of 2023, KE will have 900 MW of power through an investment of billions of rupees.