April 25, 2024

K-Electric's investment roadmap will be audited quarterly


ISLAMABAD: The National Electricity Regulatory Authority (NEPRA) has decided to conduct quarterly third-party audits of K-Electric’s seven-year investment roadmap – Transmission and Distribution Investment Plan, ARY News reported on Wednesday.

The regulator has taken a decision on power utilities' transmission and distribution investment plans up to fiscal 2030, but K-Electric has failed to convince NEPRA about its Rs 484 billion investment plan.

The order said NEPRA will determine the terms of reference (ToR) for the third-party audit besides announcing the quarterly audit. The company will have to submit quarterly reports on the progress of its investment plans.

The statement said Karachi's only electricity distribution company, K Electric, will also have to submit a performance report based on its investment plan. The authority also directed the company to ensure a safe system to prevent electrical accidents.

Meanwhile, the power distribution company said in a statement that the investment plan will further its efforts to reduce transmission and distribution losses, facilitate the expansion of its customer base and strengthen the utility's infrastructure to meet current and future demand.

“Since privatisation, investments of Rs 544 billion have enabled KE to double its customer base, double the power consumption of this customer base and reduce transmission and distribution losses by more than half,” it said.

The plan was submitted in accordance with regulatory guidelines and a public hearing was held in March 2023, when KE management briefed stakeholders on the planned projects for fiscal years 2024 to 2030, according to the statement.

KE said that during this period it has clearly identified priorities and projects in investment areas such as growth, reducing energy losses, network repair, maintenance and safety.

On the transmission side, the plan envisages additional grid connections and lines, which will further strengthen the reliability of KE's network and allow for the supply of additional electricity from the National Grid.

CEO KE Moonis Alvi said, “Over the next seven years, we plan to invest $2 billion in transmission and distribution to address the needs of cities through targeted investments and technology-based interventions. I would like to thank all stakeholders for their efforts in joining us on this journey and continuing to work with us to modernize our infrastructure and prepare it for the future.”

This investment plan complements the company's power acquisition program, which outlines KE's vision of achieving 30% renewable energy share in its generation mix by 2030. In this regard, the company has also received regulatory approval for its RFP for 640 MW of renewable energy projects, another important link in its mission to ensure access to affordable energy for all.


Source link