Govt considering KE split into different distribution companies

The government is considering dividing K-Electric into different distribution companies instead of giving it to a single foreign company.

Special Assistant to the Prime Minister (SAPM) on Power & Petroleum Tabish Gauhar has replied to the Federation of Pakistan Chambers of Commerce & Industry. According to the letter, the government supported the recommendation from various industrial bodies to change KE into separate generation, transmission, and more than one distribution company instead of handing over its management to another single buyer.

The letter says the decision of privatization of a company, which provides electricity to more than 20 million people, was wrong. The government has also started planning increasing electricity from 650MW to 2000 MW from the national grid. In his letter, the PM’s aide said that there was no new purchase agreement regarding K-electric. He said the government also had to provide the choice of retail supply to all of KE’s end-consumers once its exclusivity and monopoly expired in 2023.

FPCCI president Mian Nasser Hayat Maggo said there were many issues because of the monopoly of KE. He said their demand was to end the monopoly of KE and the status of one company should be changed into different companies.

Earlier, in this letter to PM, FPCCI president sought PM’s intervention to postpone the proposed sale of KE shares by its current owners. He had expressed his fear that KE’s current monopoly structure could harm the industry in Karachi, Hub, and Dhabeji. He said that electricity was being produced with outdated powerplant resulting huge financial burden on the masses. He said Karachi was still facing electricity load shedding even the exempted areas were having this situation.