NEPRA hints at suspending KE license over Karachi power outages

The National Electric Power Regulatory Authority has hinted at suspending K-Electric's license and imposing a heavy fine on the power utility over prolonged power cuts in Karachi.

The regulator issued on Thursday a show-cause notice to the sole power distribution company in Karachi.

It said neither the KE kept required quantity of furnace oil for the Bin Qasim Power Plant-I, nor it had its system serviced despite approval for Rs25 billion increase in the power tariff.

The power utility got the permission to charge consumers Rs84 billion in order to complete 900MW Bin Qasim Power Plant-III, according to the NEPRA. But the project which was to be completed in December 2019 is still nowhere close to its completion.

The KE failed to sign an agreement with the Sui Southern Gas Company regarding the purchase of gas, it said. Neither the power utility sent the Pakistan State Oil its demand for furnace oil, nor did it run several other power plants on alternative fuel.

The NEPRA identified overloading at 39 power transformers as the reason behind unannounced load-shedding in Karachi.

The power regulator has sought a reply from the KE within 15 days.