Karachi: The National Electric Power Regulatory Authority (Nepra) has awarded DHA City Karachi (DCK) two 21-year licences for electricity distribution and supplier of last resort (SoLR), allowing a private entity to perform both functions for the first time under the regulator’s revised framework.
The licences have been granted to DHA Energy Supply Company (Desco), with its distribution jurisdiction initially limited to DHA City Karachi, located on the M-9 motorway in Malir district.
Desco had told Nepra that DCK had no existing infrastructure connecting it to the national grid or K-Electric’s network. It had therefore reached an understanding with Lucky Cement to procure 6 megawatts of electricity and supply it to residential, commercial and other consumers within DCK through K-Electric.
Nepra rejected objections raised by K-Electric, Gujranwala Electric Supply Company and the Central Power Purchasing Agency against the issuance of the licences. The regulator said the licences were being granted strictly for facilities located within DCK.
Under the distribution licence, Desco will be required to charge consumers only tariffs, including use-of-system or connection charges, approved by Nepra. The regulator said the licences were in line with reforms aimed at liberalising Pakistan’s power sector, including separating electricity supply from distribution and removing exclusivity from the distribution segment.
Nepra acknowledged concerns regarding Desco’s financial strength and operational experience but noted that the company’s parent entity, DHA Karachi, had strong financial credentials and could support the special-purpose company if required. The regulator said Desco would also be legally required to comply with applicable technical and operational standards.
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