NEPRA approves an investment of Rs392 billion
A seven-year plan has been developed to enhance the KE supply network, with the goal of improving overall service. At this time, a final decision on implementing a tariff increase has not been determined.
In the proposal submitted to the power-sector regulator, KE highlighted that there would be a Rs1.9 increase in transmission tariff and a Rs1.3 increase in distribution tariff per unit if the investment plan was approved without any reduction. This would result in a total increase of Rs3.2 per unit (at the PKR/USD rate of 206) if the Rs484 billion investment plan was approved. Due to the uniform tariff in the country, the subsidy would be affected.
However, the regulator approved an investment plan of Rs392 billion instead of the proposed Rs484 billion by KE. This means that the tariff hike may be lower, and final figures will be discussed during the company's supply tariff proceedings. Nepra also approved a reduction of 1.95 percentage points in transmission and distribution losses from 14.58% to 12.63%.
Nepra also emphasized the importance of upgrading Scada technology to keep up with modern advancements. An investment of Rs8,161 million was approved for this upgrade. Additionally, an investment of Rs8,901 million was approved for smart network technologies, including Scada and ADMS, on 200 feeders to reduce outage durations and improve service quality.
KE stated that Nepra's decision on the Transmission and Distribution Investment Plan until FY 2030 will help reduce losses, drive customer growth, and enhance infrastructure. The company plans to invest $2 billion in transmission and distribution over the next seven years to modernize infrastructure and prepare for the future. They also aim to achieve a 30% share of renewable energy in their generation mix by 2030.
Overall, the investment plan focuses on areas such as growth, energy loss reduction, network rehabilitation, maintenance, safety, and digitization. KE is committed to working with stakeholders to ensure a sustainable and cost-reflective tariff for the timely execution of the investment plan.
