KARACHI: K.Electric (KE) has reduced its transmission and distribution (T&D) losses from around 34 percent at the time of privatisation to 15 percent by the end of FY22, KE’s chief financial officer Muhammad Aamir Ghaziani said on Tuesday.
Speaking to a corporate briefing session held at the Pakistan Stock Exchange, he stated that the utility company had improved its core business through sustained investments in the value chain.
“Despite macroeconomic and geopolitical challenges, KE is confident in serving its customers in a reliable and efficient way through a comprehensive, multi-pronged strategy,” he said.
Ghaziani apprised the session that the utility company was able to reduce its T&D losses from 34 percent at the time of privatisation in to 15 percent by the end of the previous fiscal year. The company was privatised back in 2005.
In first quarter of FY23, the T&D losses dropped by 2 percentage points, as compared to the same period last year, while generation efficiency improved by 0.6 percentage points during that time, he added.
Investment of around Rs62.8 billion in FY22 and Rs11.6 billion in first quarter of FY23 was made across power value chain, according to the KE official.
“KE is also preparing itself for the future. The panel shared plans to add up to 500MW [megawatts] of efficient, clean energy in the short term to diversify the company’s fuel mix and lower the costs of electricity for the company and consumers alike.”
Construction works of Dhabeji and KANUPP–K-Electric Interconnection grids were underway to allow KE to receive additional supply of up to 2050MW from the National Grid, he added.
On the distribution front, according to KE CFO, the company intends to enhance its infrastructure and continue efforts to reduce distribution losses by rolling out aerial bundled cables on its network and implement new and re-engineered processes for an improved customer experience.
The briefing also shed light on external factors which affected the company’s financial performance including, demand disruption due to macro-economic factors, receivables from the government and related entities, devaluation of the rupee resulting in exchange loss, increases in effective rates of borrowing leading to higher finance cost, and increases in consumer tariffs which affected customer’s propensity to pay bills, resulting in increase in the provision against doubtful debts.
KE officials present in the briefing were hopeful about an increase in growth on a shift of captive consumers to grid during the upcoming winter season, saying the company was working on conversion of captive consumers to grid in line with the government’s policy as well as simplified new connection process.
Speaking at the event, Sadia Dada, KE’s chief marketing and communication officer, shared the company's corporate social responsibility strategy, highlighting its programmes about installation of water filtration plants, renovation of schools and public parks, and setting up of health camps.
“KE’s flagship Roshni Baji Program also completed its 2nd cohort. Collectively 100 women have undergone training as KE’s neighborhood safety ambassadors as well as the country’s first certified female electricians,” she said.
The women had collectively educated over 463,000 households on safe practices for electricity usage, building safer communities, Dada shared.
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