KE plans $2bn infrastructure boost after tariff nod

KARACHI: Power utility K-Electric (KE) on Monday unveiled plans for a $2 billion infrastructure overhaul, bolstered by the recent approval of its multi-year tariff (MYT) by the National Electric Power Regulatory Authority (Nepra).

The utility, addressing stakeholders at the Pakistan Stock Exchange (PSX), reiterated its commitment to delivering reliable, affordable and sustainable power to Karachi and surrounding areas.

The session provided insights into KE’s operational trajectory and strategic outlook. The newly approved MYT, covering fiscal years 2024-2030, is expected to unlock crucial investments aimed at modernising and expanding the city’s power grid.

KE, which is Pakistan’s sole vertically integrated power utility, is also ramping up its renewable energy portfolio, having completed competitive bidding for 640 megawatts (MW) of clean energy projects. This includes a 220MW hybrid solar-wind facility at Dhabeji, awarded at a record-low tariff of Rs8.92/kWh, alongside 150MW of solar projects in Winder-Bela. The utility aims to integrate 30 per cent renewable energy into its generation mix by 2030, diversifying away from expensive fossil fuels.

“Nepra’s approval of our MYT enables us to unlock critical investments in infrastructure for safe and reliable supply of power,” said KE’s Chief Financial Officer Muhammad Aamir Ghaziani. He clarified that the approved tariff would not impact consumer-end electricity prices, which fall under the government’s uniform tariff policy.

KE also highlighted broader sectoral challenges, including the impact of non-provision of local gas on its tariff structure. The company asserted its zero contribution to the nation’s circular debt, attributing the burden to inefficiencies within public distribution companies.