Government intervention urged for management of 300 loss-making power feeders, as per K-Electric's suggestion.
Karachi Seeks Government Intervention to Tackle Power Outages
In a bid to make Karachi load-shedding free, K-Electric has appealed to the federal government to take control of 300 loss-making feeders out of its 2,129 distribution network. These feeders, accounting for 87% of the utility's total losses, are primarily responsible for high inefficiencies—often exceeding 70%—due to poor revenue recovery.
Monis Alvi, K-Electric's CEO, expressed confidence that moving these feeders under government control would significantly reduce power cuts across the city. He assured that K-Electric would continue providing electricity to these areas, provided the government implements an effective recovery mechanism.
The call comes as K-Electric faces criticism over extended power outages in Karachi during recent high temperatures. This pressure has been mounting from authorities such as the National Assembly's Standing Committee on Power and the Sindh Assembly. However, the government has yet to officially respond to K-Electric's proposal.
If the takeover transpires and a recovery mechanism is established, Alvi anticipates that Karachi could become 90% load-shedding free by 2030. Currently, about 70% of the city is exempt from power cuts.
Regarding the Multi-Year Tariff (MYT) for the supply segment from FY2024 to FY2030, Alvi clarified that it would not impact electricity rates for consumers, as these are still governed by the uniform tariff policy applicable across Pakistan.
K-Electric also expects to increase its transmission capacity to 5,000 megawatts by 2030, catering to a projected consumer base of 5 million in Karachi. Moreover, the company is prepared to connect captive power industries to the grid and uphold the agreed timeline for transitioning them to the main power supply in collaboration with the government and relevant stakeholders.
It is worth noting that authorities like NEPRA have criticized feeder shutdowns in response to high losses, advocating for improved operational management instead. Regulators view punitive load-shedding measures as unjustifiable and ethically questionable.
Copyright Business Recorder, 2025
The energy-sector industry in Pakistan could witness growth with K-Electric's proposal for government control over 300 inefficient feeders, aiming to reduce power outages in Karachi by 2030. If successful, this move could boost the finance sector as well, as improved electricity supply may stimulate economic activities. Additionally, the index of energy efficiency could witness a significant improvement, showcasing a positive shift in the industry's performance.
