K-Electric Management today briefed National Assembly Public Accounts Committee on the future investment plans of company. The NA Committee enquired on company’s increasing transmission losses and suggested other measures to increase awareness amongst masses.

CEO, K-Electric, Mr. Tayyab Tareen informed the Committee that KEL is investing more than the pledged numbers and is currently is building a Coal – based 600 MW Power Plant in Karachi which will further improve supply situation. He also mentioned that power generation has been shifted from Furnace Oil to LNG input which has increased output and efficiency by manifolds. Furthermore, K-Electric re-invests whatever it earns back into the country and not a single paisa goes out of Pakistan. He also said the company has written proof to corroborate these claims.

Regarding payables and receivables of the company, K-Electric Team informed the committee that different Government Departments owe K-Electric more than 97 billion, whereas K-Electric payables currently are at 51 billion. Karachi Water Board, City Government, Federal and other Provincial Governments are yet to pay their dues to the company.

Talking about the sale of K-Electric to Shanghai Electric, Management informed the committee that deal was agreed upon in October, however, the transaction is yet to receive security clearance from Privatization Commission. He also informed the committee that Shanghai Electric plans to invest more than 9 billion dollars in Pakistan. NA Committee showed its satisfaction over the course of future investments by K-Electric and appreciated management efforts.

Committee Member, Mr. Arif Alvi asked the Management to inform the general populace regarding deployment of Meters and clear the rumors of excessive billing spreading in the city. The management said that K-electric uses standard meters which are made in Lahore and are being used across the country by all Power Suppliers. Mr. Alvi asked the Management to clear the rumors regarding meters and also suggested at a meeting with Karachi Waste Management to generate electricity from the Karachi’s Waste.

On the other hand, Chairman Committee showed his disapproval at K-Electric’s increasing Transmission losses. He said that WAPDA which is Public owned entity has much less transmission losses when compared against K-Electric’s despite having zero political interference.

He said that WAPDA currently reports 16% percent losses whereas, K-Electric which is a privately owned company has reported losses more than 21%. Managing Director, K-Electric said that they accept the Reservations of the Committee and are currently working to find a solutions to these problems.

K-Electric Team informed the Committee that technical losses and Electricity Theft losses are currently at 8 – 9% and 12 – 14% respectively. During the briefing, the K-Electric Management informed the Committee that, according to estimates 1% electricity theft causes 2.5 billion worth of losses to the company.

K-Electric Management also informed the Committee that there are still many areas across Karachi in which K-Electric in unable to collect utility bills.