KE faces end of power distribution monopoly

-MD K-Electric directed to resolve issues of power breakdowns

By Ali Imran

ISLAMABAD: The federal government is considering to un-bundle the K-Electric into separate generation, transmission and distribution companies, the Special Assistant to PM wrote in reply to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
PM’s Aide on Power & Petroleum Tabish Gauhar has confirmed in a letter to the FPCCI that the government considering to un-bundle the power utility instead of transferring it as an integrated single entity to a buyer.
The development come to the fore officially after recent row between Karachi-based trade bodies led by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and the power utility over reported poor power supply in Karachi.
The prime minister’s aide wrote that privatising a monopoly provider of electricity to more than 20 million people was a poor decision. He Gauhar said the government has started to work in this direction by increasing power supply to Karachi from the national grid from 650MW to up to 2000MW, subject to signing a Power Purchase Agreement, which is still pending.
Federation of Pakistan Chambers of Commerce & Industry (FPCCI) president Mian Nasser Hayat Maggo in a letter had demanded end of the monopoly of the K-Electric. This monopoly causing power problems in the city, the FPCCI wrote. The trade body had demanded power supply from different distribution companies to address the electricity woes of the city.
Meanwhile, Sindh Governor Imran Ismail on Monday directed Managing Director K-Electric Monis Alvi to personally look into the ongoing prolong and unannounced electricity breakdowns in different parts of Karachi and address the grievances of the citizens immediately. The MD-KE, the sole power provider of the metropolis was summoned by Sindh Governor Imran Ismail at the Governor House Monday following the public complaints of loadshedding in different areas of Karachi.
Governor Ismail directed MD KE to personally handle the loadshedding issues in the metropolis besides resolving the citizens’ complaints at the earliest. During the meeting, the governor also made a telephonic call to Minister for Energy Hammad Azhar. The federal minister also issued directives to the KE managing director.