Nepra Declares K-Electric’s Commercial Load Shedding Illegal

The National Electric Power Regulatory Authority (Nepra) has ruled that K-Electric’s (KE) revenue-based, or commercial, load shedding policy is unlawful and ordered the utility to immediately halt unannounced, unscheduled and excessive power outages, particularly those affecting consumers who regularly pay their electricity bills.

Nepra stated that electricity theft, commercial defaults or high losses on a feeder cannot be used as grounds to disconnect compliant consumers connected to the same network. The regulator directed KE to ensure that paying customers are not punished for the actions of other consumers.

According to Nepra, revenue-based or AT&C-based load shedding has no legal basis under the Nepra Act, applicable regulations or KE’s licence. Electricity supply may only be curtailed under circumstances permitted by the regulatory framework, such as technical limitations, system emergencies or shortages in generation.

Nepra’s investigation found that KE had been exceeding its own announced load shedding schedules while also carrying out additional outages without prior notice. The regulator said the practice had created compounded power shortages for around 2.37 million consumers.

The authority instructed KE to replace feeder-level load shedding with targeted action against individual defaulters and electricity thieves. It also called for stronger anti-theft operations and prosecution under the relevant laws.

KE was further directed to install Aerial Bundled Cables (ABC) in areas experiencing high losses and submit a time-bound plan for phased installation within 30 days. The utility must also provide Nepra with a detailed compliance report within the same period.

Nepra pointed out that it had already fined KE Rs50 million through an order issued on April 4, 2024, over similar violations. However, the regulator said no meaningful operational improvements had been made by the utility.

The proceedings began following complaints from Karachi residents and the Karachi Chamber of Commerce and Industry (KCCI) over excessive and commercially driven load shedding. Nepra subsequently served KE with a Show Cause Notice, with proceedings still continuing.

A KE spokesperson said the company had taken note of Nepra’s order, was examining its contents and would submit its response within the prescribed timeframe.