Business Recorder
ISLAMABAD: Taking serious notice of prolonged power outages in Karachi in violation of commitments, National Electric Power Regulatory Authority (NEPRA) has sought a report from the management of K-Electric. The issue of excessive load shedding by KE came under the spotlight during a public hearing on the Fuel Charges Adjustment (FCA) for April 2026. The Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought a positive adjustment of Rs 1.73 per kWh to recover an additional Rs 16.03 billion, citing lower hydel generation, non-availability of RLNG due to the Middle East conflict, and reduced output from coal-fired plants and KANUPP-3 owing to a reactor fault. Officials said the relatively moderate FCA for April 2026 was primarily due to rationing of indigenous gas, hydel generation, and fewer hours of load shedding. READ ALSO: Treasury, opposition benches assail KE for power outages During the hearing, Director General Consumers Affairs Division (CAD), Naweed Illahi Shaikh, stated that KE was carrying out unannounced and extended load shedding despite intense heat and was not adhering to the prescribed schedule. He added that NEPRA had received complaints from multiple areas regarding delays in fault rectification, causing severe inconvenience to consumers. “KE is not observing low-loss and high-loss timings, and faults are also not being considered, despite its commitment that outages due to faults during load shedding would be included in the total duration,” he said. NEPRA observed that the utility was not following the approved timings and was resorting to excessive load shedding during hot weather. The Authority directed KE to submit a comprehensive report on load shedding practices and non-observance of low-loss and high-loss timings. Deputy Director Tariff (KE), Ghufraan Ahmad, was directed to submit the report for the Authority’s review. Representing the Karachi Chamber of Commerce and Industry (KCCI), Tanveer Barry urged NEPRA to take strict action against KE over prolonged outages. Member (Tariff and Finance) Amina Ahmed and Member (Development) Maqsood Anwar Khan officiated the hearing. During the proceedings, Chief Executive Officer (CEO) CPPA-G, Rihan Akhtar, stated that energy supply was disrupted in April due to the ongoing regional conflict, resulting in zero imported LNG availability during the period. He added that the government diverted indigenous gas to RLNG-based power plants through special arrangements at Rs 2,000 per MMBTU compared to LNG’s Rs 3,492 per MMBTU, providing some relief in FCA. CPPA-G officials said the situation improved in May, with LNG cargoes arriving through both long-term contracts and spot purchases, enabling RLNG-based plants to resume operations. They also noted that electricity consumption declined across all sectors except industry. According to CPPA-G, LNG supply planning has been completed on a daily basis for the next two months, and no major shocks are expected in fuel adjustments for May, June, and July. The CEO CPPA-G stated that if KE had not been supplied electricity from the national grid, consumers would have faced an increase of Rs 1.46 per kWh in FCA and Rs 2.80 per kWh in capacity purchase price (CPP), totaling Rs 4.26 per kWh for April 2026. Electricity consumption declined by 14.6 percent in April 2026 compared to April 2025. Commercial consumption fell by 9.5 percent, general services by 7.2 percent, bulk by 12.7 percent, agriculture by 53 percent, and others by 0.8 percent. However, industrial consumption increased by 13.5 percent to 2,215 GWh from 1,951 GWh in the corresponding month last year. Overall electricity consumption declined by 8.5 percent to 6,917 GWh in April 2026 from 7,558 GWh in April 2025. Sharing details of the surplus power package, the CPPA-G CEO said that out of 280,541 industrial consumers, 128,219 (46 percent) benefited from the package, representing 37 percent of total eligible consumers, including industrial and agriculture categories. In energy terms, an additional 581 GWh was sold, reflecting a 24 percent increase in April 2026 compared to April 2025. Consumption by captive power consumers also rose from 537 GWh to 596 GWh, showing an increase of 11 percent. RehanJaved raised concerns about the incremental package, urging the government to review it to address deficiencies, as several industrial consumers who opted for the package have not seen the expected benefits. Responding to a query on terminal charges despite non-availability of LNG, the CEO CPPA-G said the matter is under discussion at various forums and efforts are underway to reduce these charges, which would provide relief in FCA. Chief Financial Officer (CFO), Power Planning and Monitoring Company (PPMC), Naveed Qaiser, stated that the package had extended benefits to eligible consumers. He added that the government had committed to reviewing the package after six months and that complete data would be shared with NEPRA. He further revealed that the government is planning to introduce another package soon to boost electricity consumption. ArifBilwani sought clarification on reduced generation from nuclear, coal, and wind power plants linked to KE’s system. In response, the CEO CPPA-G stated that while the wind power plant is connected to the national grid, it cannot supply electricity until the completion of the relevant grid station. NEPRA’s Syed Safeer Hussain also raised questions regarding the comparative benefits of the Lahore-North transmission line versus the South-North transmission line. Officials of the Independent System and Market Operator (ISMO) informed the Authority that the lowest generation of 6,228 MW was recorded on April 5, 2026 — the lowest for any April — while the maximum generation reached 18,905 MW on April 30, 2026. Overall, power generation declined by 9.7 percent in April 2026 compared to April 2025. A KE Spokesperson said, “K-Electric will fully comply with the instructions of NEPRA Authority and submit its report to the regulator. Loadshedding is aligned with the principles of the National Electricity Policy 2021. In addition, due to development work in the city by civic authorities and other utilities, localised faults have been reported. KE field teams are deployed to address those faults at the earliest.” Copyright Business Recorder, 2026
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