NEPRA issues notice to K-Electric over load-shedding

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has served a show-cause notice on K-Electric (KE) over failure to comply with its instructions relating to forced load-shedding.

The regulator pointed out that KE had been resorting to load-shedding based on aggregate technical and commercial (AT&C) losses, which violates the Nepra Act and the Performance Standards (Distribution) Rules, 2005.

According to the authority, distribution companies (DISCOs) are bound to maintain plans and schedules to shed up to 30% of their connected load at any time upon instructions from the National Transmission and Despatch Company (NTDC).

This load must be divided into separate, switchable blocks that can be disconnected as directed by NTDC. Copies of these plans must be shared with NTDC.

Nepra emphasised that NTDC, where possible, should provide distribution companies with advance warning of impending load-shedding to help maintain system voltage and frequency in line with the Grid Code.

NTDC is also responsible for instructing distribution companies about the specific amount of load to be disconnected and the timing, using clear and unambiguous communication based on approved plans.

Previously, on January 8, 2025, Nepra issued an explanation to KE under Regulations 4(1) and 4(2) of the Nepra (Fine) Regulations, 2021, citing non-compliance with its directives.

The regulator stated that KE had been implementing load-shedding based on AT&C losses, which violates the Nepra Act and the Performance Standards (Distribution) Rules, 2005.

In this practice, entire feeders with commercial losses – such as electricity theft and non-payment – are shut down for hours, even when some consumers on those feeders are fully compliant and regularly pay their bills. "Nepra considers this unfair to compliant consumers."

In response to this practice, the authority had initiated and concluded legal proceedings, resulting in a Rs50 million penalty on KE.

"Nepra continues to stress that load-shedding should only be carried out at the Pole Mounted Transformer (PMT) level and only when absolutely necessary – such as in the case of generation shortages or transmission constraints, and only under instructions from system operators."

Meanwhile, KE launched a project in 2021 to install Advanced Metering Infrastructure (AMI) and Automated Meter Reading (AMR) system at the distribution transformer level, costing Rs600 million.

The project aimed to identify energy losses due to theft and non-payment and to facilitate commercial benefits. KE also claimed that these meters would enable remote connection and disconnection at the transformer level. The project was completed in December 2021, with a test run conducted through June 2022.

Nepra reviewed the project's records, reports and KE submissions and found that while the company has reaped commercial benefits from the AMI/AMR system, it has not utilised the technology to provide relief to consumers by performing targeted load-shedding at the PMT level, despite the capability to do so.

Furthermore, during public hearings on monthly fuel cost adjustments (FCA), Karachi residents widely complained about excessive and unfair load-shedding, reinforcing Nepra's concerns.

A KE spokesperson regarding Nepra's show-cause notice stated, "KE is currently reviewing the show-cause notice received from Nepra. After a comprehensive review, we will submit our response in line with the timeframe set by the authority."