Briefly put: The introduction of smarter processes, a completely new level of engagement with stakeholders, and targeted investment has made K-Electric profitable for the first time in more than 17 years.
K-Electric Limited (KE), previously known as KESC, is the only privately held vertically integrated power utility in Pakistan. It has an installed generation capacity of 2 340 MW, manages the transmission of nearly 5 000 MVA and distributes electricity to 2.4 million customers in its licensed area covering the city of Karachi and the surrounding areas of Sind and Balochistan. The Industrial sector accounts for 36% of energy consumption, followed by the Residential segment at 34%, Commercial and the Public Sector accounting for 15% each. In the financial year 2013, KE provided 15.16 million KWKWh of electricity and distributed 10.94 million KWKWh (having a peak demand of almost 2 800 MW).
Says Jamil Akbar, Director – Business Strategy: “The transmission and distribution (T&D) losses have been brought down significantly over the last five years, reducing from 35.9% (FY 2009) to 25.1% (12 months to 31 March 2014), but there is still need for further improvement.”
KE has managed to achieve this level of success in T&D loss reduction through a comprehensive turnaround plan that was driven by The Abraaj Group when it took over KE in 2009.