The National Electric Power Regulatory Authority (Nepra) is set to conduct a public hearing on Tuesday to consider a request for the renewal of K-Electric’s (KE) electricity distribution and supplier licence.
Nepra has framed 17 questions in response to comments from various stakeholders while KE will present its arguments.
KE, a private power utility, has filed for the renewal of its licence on a non-exclusive basis. Ex-Wapda distribution companies (DISCOs) have already been awarded non-exclusive licences for a period of 20 years. The process took considerable time during which provisional extensions were granted to ensure the continuity of services.
The clause of exclusivity for the entire country had been removed when the Amendment Act 2018 was introduced, which superseded the Nepra Act. KE has filed the licence renewal request along with separate petitions for power generation, transmission and distribution business, which has been further split into “supply” and “wire” businesses.
These separate requests or “unbundled” tariff should be aligned with the prevailing power sector policies.
Hearings have already been conducted on KE’s investment plans for the transmission and distribution network, where almost Rs500 billion will be injected over seven years to improve infrastructure.
Read: NEPRA okays Rs1.71 per unit hike in power tariff
A hearing was also held on the company’s power generation tariff. KE follows an IPP mode and files requests for individual power plants for their remaining useful life.
Similarly, Nepra has concluded hearings on KE and DISCOs’ power acquisition programme, which highlights future addition to the generation capacity.
Such plans are centered on the addition of renewable energy to ensure an affordable cost of electricity for end-consumers. This is a critical point at a time when inflation and macroeconomic conditions have impacted consumer prices of electricity.
Published in The Express Tribune, November 28th, 2023.
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