LEGAL

Nepra Issues Show-Cause to K-Electric Over Discriminatory Loadshedding

Nepra serves show-cause notice to K-Electric for failing to explain discriminatory loadshedding in Karachi. Citizens paying bills still suffer outages. Rs200M fine possible.
2025-06-24
Nepra Issues Show-Cause to K-Electric Over Discriminatory Loadshedding

The National Electric Power Regulatory Authority (Nepra) has issued a show-cause notice to K-Electric (KE), Karachi’s sole power distribution company, for failing to provide a satisfactory explanation over allegations of discriminatory and excessive loadshedding in the metropolis.

The move comes amid widespread complaints from Karachi residents about prolonged power outages, particularly during the peak summer months. In a notice dated June 23, a copy of which is available with Dawn.com, Nepra said that K-Electric has not adhered to load management regulations and has penalised paying consumers along with defaulters.

“Nepra received a large number of complaints regarding persistent and excessive loadshedding across various areas of Karachi,” the authority noted, adding that it had directed KE to alleviate public suffering.

Under the Nepra framework, distribution companies (Discos) must implement electricity outages based on a standard priority schedule — starting from rural areas and ending with critical infrastructure such as hospitals and defence installations — and only under directions from the National Transmission and Dispatch Company (NTDC).

However, Nepra pointed out that KE has been conducting feeder-level outages in areas with commercial losses due to theft or non-payment of dues, thereby affecting regular bill-paying consumers who are not at fault.

“This establishes that compliant consumers are unnecessarily being punished due to some defaulters,” the notice reads. Nepra also reminded KE that it possesses advanced metering infrastructure (AMI/AMR) which allows targeted disconnections at the transformer (PMT) level. Despite this capability, KE allegedly continues broad-based outages.

During public hearings on Fuel Cost Adjustment (FCA), residents of Karachi reportedly raised serious concerns about discriminatory and frequent power cuts, further prompting the regulatory action.

Nepra had initially sought an explanation from KE in January 2025. Following the company’s formal reply submitted on January 27, the regulator concluded after deliberation that KE had failed to provide a satisfactory explanation for its practices.

As a result, KE has now been served a show-cause notice and must respond within 15 days. Nepra warned that non-compliance may result in a fine of up to Rs200 million, with an additional Rs100,000 per day of continued violation.

Nepra also directed KE to shift its loadshedding approach to the PMT level, ensuring that only non-paying or electricity-theft-affected transformers are disconnected — sparing consumers who have no role in the commercial losses.

The controversy has reignited public anger in Karachi, where rising temperatures, power cuts, and growing bills have led to increasing frustration over what many see as a fundamental failure in power governance.