KE CEO says multi-year tariff will not burden consumers

KARACHI: K-Electric’s (KE) Chief Executive Officer Moonis Abdullah Alvi has clarified that the company’s proposed multi-year tariff (MYT) will not impose any additional burden on ordinary consumers.

Speaking to journalists during an informal interaction, Alvi stated that a uniform national tariff policy is in place, under which electricity consumers across the country pay the same rates. “There will be no special hike for Karachi consumers under the MYT,” he emphasised.

Highlighting the company’s progress since privatisation, Alvi noted that KE’s transmission and distribution (T&D) losses were at 43 per cent at the time of privatisation, compared to a national average of 28 per cent. “Today, our losses have been reduced to 20 per cent, while the national average stands at around 24 per cent,” he said.

According to Alvi, this reduction has translated into a benefit of Rs10 per unit in electricity tariffs. He added that effective implementation of the MYT would enable KE to make Karachi 90 per cent load-shedding free by 2030.

By that year, the city is projected to have five million electricity consumers and a demand of up to 5,000 megawatts (MW), he said. KE is investing in new technologies to reduce load-shedding down to the level of individual PMTs and feeders. Commenting on power theft and line losses, he revealed that of Karachi’s 2,200 feeders, around 300 are severely affected by theft and high losses. KE has proposed that the government step in to manage these areas. “If the government assumes responsibility for internal distribution on these feeders, the city could virtually become load-shedding free,” he said.

Alvi described KE’s relationship with consumers as a partnership. “With the support of citizens, public representatives and the city administration, the quality of power supply can be further improved,” he said. He also expressed willingness to connect captive power-based industries to the national grid and stated that KE is ready to adhere to agreed timelines for their transition.

In response to growing demand fuelled by rising economic activity, KE currently has the capacity to supply up to 4,500MW to the city, he added.