Wednesday, July 24, 2024

Aligned with Utility’s Multi-Year-Tariff Request, NEPRA Provisionally Renews K-Electric’s Distribution License

In a move that echoes its commitment to regulatory integrity, the National Electric Power Regulatory Authority (NEPRA) has provisionally renewed the Distribution License of K-Electric Limited (KEL). The renewal is in line with KE’s application for license renewal on non-exclusive basis submitted in December, following the stipulations outlined in Sections 20 and 25 of the NEPRA Act.

In a regulatory meeting, NEPRA consented to renew KE’s license, thus paving the way for the utility company to continue its operations under outlined conditions. In its notification, NEPRA has introduced a few terms in line with the Authority’s aim for the power sector of the country to move towards a more liberalized market.

All XWDISCOS have already been granted their distribution and supply licenses on a non-exclusivity basis though their applications were made to maintain their exclusivity. The process of renewing license aligns with the routine regulatory requirements for all distribution companies across the country. This step has effectively quelled the attempts of negative vested interests that sought to derail the regulatory process for power distribution companies across the country.

As the power sector inches towards opening up and new companies enter the distribution market, the challenge of providing power to areas where recovery is low has emerged as a significant concern. Concurrently, there’s growing discourse about the potential for welfare organizations to take up power distribution licenses. These organizations may help address this issue in underprivileged areas, potentially offering electricity at subsidized rates or even free of cost, thereby playing a pivotal role in the upliftment of these communities.

The provisional renewal, in line with the utility’s multi-year-tariff request, is valid for up to six months or until NEPRA reaches a final decision.

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