Tag: K Electric

  • Energy sector to get a massive portion of the Rs699 billion subsidy

    Energy sector to get a massive portion of the Rs699 billion subsidy

    The government has proposed allocating Rs699 billion to multiple sectors in order to provide relief to the masses during the new fiscal year 2022-23.

    According to budget estimates, the government plans to boost subsidies by Rs17 billion to Rs699 billion for the next fiscal year, up from Rs682 billion in the previous fiscal year.

    The government has reduced power sector subsidies by Rs26 billion to Rs570 billion for the next fiscal year, down from Rs596 billion in the previous fiscal year and proposed increasing the total subsidy for the power sector for PEPCO by Rs18 billion to Rs275 billion. The budget 2022-23 proposed reducing the subsidy amount for K-Electric by Rs5 billion to Rs80 billion.

    Moreover, subsidies for Independent Power Producers (IPPs) are slashed by Rs39 billion to Rs215 billion for the coming fiscal year.

    The amount of petroleum subsidy has been upped from Rs51 billion to Rs71 billion. During the next fiscal year, the Utility Stores Corporation (USC) will receive a Rs17 billion subsidy. PASSCO will also receive Rs7 billion subsidy.

    During the next fiscal year, Rs8 billion has been set aside for wheat subsidies to Gilgit-Baltistan. For the coming fiscal year, the subsidy for the metro bus service has been increased to Rs4 billion. Similarly, the fertiliser plant subsidy has been increased to Rs15 billion.

    Read more: Govt unveils Rs9.5 trillion budget 22-23, focused on sustainable growth

    The new government has reduced the Naya Pakistan Housing and Development Authority (NAPHDA) subsidy amount to Rs500 million for the next fiscal year, down from Rs30 billion in the previous fiscal year. NAPHDA’s markup subsidy has also been reduced, from Rs.3 billion to Rs.500 million for the coming fiscal year.

  • NEPRA hikes power tariff by Rs2.86 per unit

    NEPRA hikes power tariff by Rs2.86 per unit

    The National Electric Electricity Regulatory Authority (NEPRA) has increased the power price by Rs2.86 per unit for the month of March 2022 due to Fuel Charges Adjustment (FCA) and also issued a notification in this regard.

    As per NEPRA’s notice, power consumers of Ex Wapda Distribution Companies (DISCOS) will be charged an increase of Rs2.86 per unit on account of FCA for March 2022 in their electricity bills for May 2022, resulting in an added strain of Rs29 billion on consumers, along with General Sales Tax (GST).

    The Central Power Purchasing Agency (CPPA) had urged the administration to raise the electricity tariff by Rs3.16 per unit. Except for lifeline and K-Electric (KE) customers, the hike will apply to all consumer categories.

    Read more: Pakistan starts oil and gas production from Dhok Sultan DS X-1

    Moreover, the authority also announced Rs1.38 per unit increase for K-Electric customers. For the month of February 2022, Karachi Electric (KE) requested an increase of Rs3.45 per unit. The hike will be billed to electricity customers in May 2022, according to the announcement. Except for lifeline customers who use less than 100 units per month, the tariff increase would affect all KE customers.

  • Nepra approves Rs1.29 hike in cost per unit for Karachi residents

    On account of monthly Fuel Cost Adjustments (FCA), the National Electric Power Regulatory Authority (NEPRA) raised the cost per unit of power for Karachi residents by Rs1.29.

    It held a public hearing at its headquarters on Karachi Electric’s (KE) request to hike the power tariff under the FCA by Rs3.45 per unit for February. Chairman Tauseef H. Farooqi chaired the public meeting, which was also attended by officials Rafiq Ahmed Sheikh and Engineer Maqsood Anwar Khan.

    According to the officials, KE’s monthly FCA is decided at Rs1.29 per unit based on data analysis.

    The Chairman inquired about Karachi’s load-shedding status and if KE has a gas procurement deal with the Sui Southern Gas Company (SSGC) to address the fuel crisis.

    Load management is only done on feeders with a low recovery rate, according to the latter’s officials, and consumers only have to experience one to one-and-a-half hours of load shedding every day.

    Chairman Farooqui stated that KE’s technology needs to be modernised, and that there should be no load-shedding for bill-paying customers and locations where billing is timely.

    He also mentioned that the NEPRA has posted phone numbers on its website for inhabitants of the city to report any forced load-shedding by any power utility.

    According to the briefing delivered at the meeting, KE’s customers were charged Rs3.28 per unit in January under the FCA. Similarly, the FCA for February was decided to be Rs1.99 lesser than the January billing.

    Muhamad Tanveer, who is a representative of the Karachi Chamber of Commerce (KCCI), denied the FCA, citing that customers are already paying for the January hike and that the FCA should not be transferred to them.

    After reviewing the facts, the NEPRA issued a thorough judgment declaring that the FCA is only levied and set for the month in concern and that it is variable with each hearing depending on the fuel costs for that month.

  • Governor Sindh Visits K-Electric’s BQPS-III Power Plant, Reviews Swift Progress of Unit One

    Governor Sindh Visits K-Electric’s BQPS-III Power Plant, Reviews Swift Progress of Unit One

    Governor Sindh Imran Ismail visited K-Electric’s Bin Qasim Power Station-III (BQPS-III) project to review the progress on the latest addition to Karachi’s power network. The visit followed a meeting between KE’s Senior Leadership and the Governor Sindh where KE presented an update on the company’s preparedness for Ramadan and the 2021 summer season.

    BQPS-III is a USD 650 million project which will be adding 900 MW of generation capacity to KE’s existing network. This mega-project is progressing on the back of close collaboration between leading engineering firms who are partnering with KE to achieve a shared vision of empowering Karachi. Work is progressing swiftly, and the first unit of 450 MW is over 70% complete and is expected to come online in the next 5 to 6 weeks. The high-efficiency plant will be utilizing RLNG as its primary fuel source. Not only is this expected to reduce the carbon footprint, the inclusion of RLNG will further diversify the company’s fuel mix and bring savings by lowering import costs for the government by eliminating the need for furnace oil.

    KE officials were joined by senior representatives from Siemens, SSGC, and PLL, who apprised the Governor of the progress on the construction of a spur pipeline which will be supplying 150mmcfd of gas to BQPS-III, which is keeping pace with the plant’s progress and is also over 90% complete. The underlying Gas Supply Agreement between SSGC and PLL is also in advanced stages and is expected to be finalized as soon as necessary approvals are received from the Government, ensuring an adequate supply of fuel to energize the plant.

    Commenting on his visit, Governor Imran Ismail said, “The sincerity of the Government of Pakistan is evident in the support they have extended to KE, and I am pleased to see that Sehr and Iftar times during this Ramadan are exempt from load-shed as a result. I’m monitoring the situation daily to ensure that the best possible facilitation is given to the citizens of Karachi. Seeing the scale and progress of work and the commitment with which KE is working, I feel positive for the future of the city. KE’s management and representatives from Siemens, SSGC, and PLL have assured me that they are working to complete the project on time, and I have instructed them to resolve any bottlenecks that may affect the energization of the plant which is expected to be inaugurated by the Honorable Prime Minister. In this process, I have also assured them of my fullest support from my office and from the Government of Pakistan.”

    CEO K-Electric, Moonis Alvi said, “We’re grateful to the Governor Imran Ismail sahab and our partners at Siemens, SSGC, and PLL for visiting BQPS-III today. The timely execution of this project is critical to meet Karachi’s future demand, and we are all working around the clock to ensure the same. I also want to commend the Government of Pakistan for their support to KE and Karachi, especially during Ramadan which has enabled us to fully support Karachi’s power requirements. We look forward to this support in the summer months as well. Without their assistance and collaboration, it would not be possible for us to realize this dream for Karachi.”

    Speaking with media during his visit to under construction BQPS-III site, Mr. Imran Maniar, Managing Director Sui Southern Gas Company Limited (SSGCL) said, “It is very important for us to work together with KE which is also our largest customer. Timely energization of this plant is necessary and we are working with KE to ensure their RLNG requirement is met. SSGC is pleased to be playing its role in this process.”

  • Karachiites lash out at K-electric for power outage, KE responds

    Karachiites lash out at K-electric for power outage, KE responds

    As this year’s spell of monsoon rains wreaks havoc in Karachi, flooded roads and houses, clogged drains and power outages have been disrupting Karachiites’ routine for the past few days.

    Amid all this, the city’s residents found themselves in added misery as there is also hours-long power outages. Most of them have taken to Twitter to share the current situation of the city and express their outrage over the situation. K-electric has said that “power will be restored as soon as it is safe to do”.

    Actor Ushna Shah also tweeted: “Excuses excuses guys. No flooding in Phase 6 and no power since almost 20 hours now.” She added that DM (direct message) is also of no use.

    Other Twitter users had similar woes.

    https://twitter.com/cobrachandio/status/1299164438457540610?s=20

    Later, K-Electric said that “several areas remain inaccessible due to high water level” and that “power will continue to remain closed until all standing water is cleared”.

  • Every Karachiite will relate to Osman Khalid Butt’s hilarious Twitter exchange with K-Electric

    Every Karachiite will relate to Osman Khalid Butt’s hilarious Twitter exchange with K-Electric

    It’s that time of the year when Karachi’s electricity provider K-Electric is at the receiving end of Karachiites wrath. Over the past couple of the days, their standard reply to all complaints – “Responded in DM” – has become a joke.

    Recently, Osman Khalid Butt had a hilarious Twitter exchange with K-Electric and is something all citizens of Karachi will be able to relate to.

    It all started when Butt shaded KE at 5 am in the morning for not restoring electricity.

    KE responded with their usual reply to which Butt joked that given how many DMs have been exchanged they should just ask each other out at this point.

    Four hours later, electricity was still not restored.

    An hour later, Butt shared that K-Electric may take 15 more hours to restore electricity.

    “I may spontaneously combust with rage,” said the actor.

    Meanwhile, Butt’s followers including his colleagues really enjoyed his rant.

  • Chinese state-owned power company interested in buying K-Electric

    Chinese state-owned power company interested in buying K-Electric

    China’s state-owned Shanghai Electric Power Company Limited (SEP) has once again renewed its interest to buy a majority stake in K-Electric (KE) from the Abraaj Group, Profit Pakistan has reported.

    According to the details, Shanghai Electric had agreed with Dubai-based Abraaj Group on acquiring a majority stake in K-Electric for $1.77 billion in October 2016.

    However, it has now become uncertain whether the business deal will still be executed at the agreed price or will be renegotiated.

    “K-Electric has received a fresh public announcement of intention from Shanghai Electric Power Company to acquire up to 66.04% voting shares in K-Electric Limited,” the company said in a notification to the Pakistan Stock Exchange (PSX) on Monday.

    K-Electric’s share price dropped 2.2%, or Rs0.08, to Rs3.55 with trading in 55.56 million shares at the PSX.

    The vertically integrated company posted a profit of Rs12.31 billion in the year ending June 30, 2018, up from Rs10.4 billion in the previous year.

  • K-Electric reports Rs12.3 billion profit

    K-Electric reports Rs12.3 billion profit

    K-Electric (KE) has announced a profit of Rs12.3 billion for the fiscal year (FY) 2017-18, marking a growth of 18.16 per cent as compared to Rs10.4 billion during the same period of last financial year, a private news outlet has reported.

    According to reports, KE’s Board of Directors held a meeting on Wednesday at the head office and approved the company’s financial results for the year that ended on June 30, 2018.

    KE declared an increase in earnings to 0.45 rupees per share in FY18 from 0.38 rupees per share in FY17.

    The company sold electricity of over Rs184.16 billion in FY18, an increase of 9 per cent as compared to Rs168.57 billion in the previous year. It also received Rs32.97 billion on account of tariff adjustment in the year compared to Rs15.29 billion in the corresponding period.

    Moreover, during the reporting period, over Rs44 billion has been invested in generation, transmission and distribution, while KE’s key financial and operational indicators marked sustained growth as well.