Water & Power Ministry asks Nepra to conduct audit of K-Electric

ISLAMABAD: The Ministry of Water and Power has asked the National Electric Power Regulatory Authority (Nepra) to conduct an in depth audit of K-Electric to ensure that issues arising out of any non-compliances are effectively addressed.
The Cabinet Committee of Energy (CCOE) has also desired that Nepra plays its regulatory role in improving the service delivery to the citizens of Karachi through better performance by K-Electric.
Although, Nepra has already started inquiry into K-Electric fiasco but it is not yet known that whether it would come up with strict measures or only lip service would be done to direct the company to improve its operation.
Nepra has by and large failed to play its effective role to regulate the cash bleeding power sector. The regulator lacks capacity as well as powers to regulate the monster of power sector in an effective manner. The issuance of this letter also showed that the regulator lacked will to proceed against the powerful that resulted into exaggerating the woes of power sector after every passing day.
The ministry woke up to remind the regulator after witnessing massive outages in the main hub of the economic activities where hundreds of people lost their lives after witnessing severe heatwave during the last few days.
The official communication of the Ministry of Water and Power to Nepra was sent keeping in view recent debates in the Parliament and public media regarding the issue of K-Electric’s underutilisation of its generation capacity as well as a possible non-compliance with its commitments to the Government of Pakistan and its consumers in not meeting the performance standards.
In this regard, since K-Electric is licensed entity under Nepra’s regulatory and statutory mandate, it is required to be closely monitored by Nepra to ensure compliance with its conditions of licence and any and all laws being administered by the Authority.
“In particular, your attention is also invited to the fact that reports of frequent tripping and analysis show that there has not been sufficient investment in improvement of distribution system by K-Electric, which should have been improved by appropriate investment and full utilisation of the generation capacity available with K-Electric,” said the letter.
The Authority has already written on several occasions on the non-compliances by K-Electric of various laws, in particular the performance standards. “In furtherance of its earlier observations and to effectively address the current situation allegedly arising out of K-Electric’s violation of performance standards and licensing conditions, we would strongly urge the regulator to conduct an in depth audit and inquiry/investigation to ensure that issues arising out of any non-compliances are effectively addressed and the licensee is held duly accountable,” it said.