ISLAMABAD: K-Electric (KE) has proposed a series of amendments to the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35, aimed at ensuring fair competition and protecting its operational rights in Pakistan’s evolving electricity market.
In a letter addressed to the Power Division, KE’s CEO Syed Moonis Abdullah Alvi urged support for key changes, including:
- Grant of Competitive Supplier and Trader Licences: KE argued that current regulations unfairly restrict a Supplier of Last Resort (SoLR) from participating in the open market. It requested amendments to allow DISCOs and SoLRs to compete through ring-fenced subsidiaries, in line with international best practices.
- Recognition as Regional System Operator and Planner: KE highlighted that under its existing Transmission Licence, it is designated as System Operator for Karachi and adjoining areas. It requested regulatory amendments to maintain planning authority for its service area, noting that transferring this role to ISMO undermines accountability and risks reliability.
- Mechanism for Stranded Cost Recovery: KE stressed the need for a robust framework to recover stranded costs arising from market liberalization. Without it, KE warned of potential losses of around Rs80 billion annually, which could burden regulated consumers.
- Adjustment of NEPRA-Approved Performance Benchmarks: With Bulk Power Consumers (BPCs) shifting to the open market, KE proposed a mechanism to adjust distribution and recovery loss targets to prevent under-recovery of prudent costs.
KE further noted that its input on renewable integration, interconnection capacity, and demand forecasts had not been adequately reflected in recent IGCEP iterations.
“We are confident the Power Division will carefully evaluate these proposals. KE remains committed to supporting power sector reforms and contributing to a fair, competitive, and sustainable electricity market,” Alvi stated.
Story by Mushtaq Ghumman
