K-Electric submits request to NEPRA to buy 6MW from Lucky Cement

July 14, 2020 (MLN): K-Electric has submitted Power Acquisition Request (PAR) to NEPRA for the power purchase from Lucky Cement Limited (LCL). The power supply to be received from LCL shall be distributed to the DHA City Karachi (DHCK).

DHCK is a new residential cum commercial project in the suburbs of Karachi. This project falls within the KE licensed territory. However, the DHCK did not timely complete KE's new connection requirement in the past and hence the required power infrastructure is not there.

Consequently, KE, DHCK, and LCL have reached an understanding for purchase by KE of surplus power of up to 6 MW from LCL and delivery of such power to DHCK by connecting through an 11kV network.

LCL has 29.7304 MW thermal power plant fired on gas which has a generation license from NEPRA.

In this regard, NEPRA approved LCL's licensee proposed modification request dated February 21, 2020 thereby allowing LCL to supply electric power to KEL for onward supply to DHCK on individual connection/metering basis.

It is pertinent to mention that LCL got a No Objection Certificate ("NOC") from Sui Southern Gas Company (SSGC) in relation to the supply of surplus power to KE.

LCL has provided Power Sale Proposal (PSP), containing details about the LCL and its proposed tariff for the review and approval by NEPRA.

KE understands that for any pass-through of power purchase costs to the consumer end tariff of KE, the same shall be determined by NEPRA. Therefore, KE requests NEPRA to admit the PAR and review the PSP of LCL to determine a generation tariff for the purchase of power from LCL in accordance with the Interim Power Procurement (Procedures and Standards) Regulations, 2005.

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