KE Threatens To Move International Court After NEPRA Hearing

K. Electric’s management has warned to move international arbitration in case Nepra tries to erode its exclusivity rights of power distribution in Karachi. The contract is due to remain till 2023.

This was written in the letter by Director of K.E. Board Shan Ashary which was addressed to Muhammad Mian Soomro the Federal Ministration for Privatisation, Prime Minister Imran Khan, Finance and Revenue Advisor to PM, NEPRA among other departments and ministries.

The letter sent on September 18, 2020, further mentioned that this action by NEPRA will put in danger Shanghai Electric Power’s acquisition. This can cost Karachi the loss of a multi-billion dollar investment and a chance for a better living for its inhabitants.  Any try to prematurely terminate the K.E’s exclusivity in the city will also discourage other future foreign investment plans.

Moreover, K.E concerns on NEPRA hearing were shared. K.E urged the government to take steps to address the concerns of K.E and its stakeholders and to also protect their rights. They added that the early termination of a distribution license will have catastrophic consequences.

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It will not only impact the operational performance especially in poorer segments of the city but also severely damage K.E’s investment in Pakistan. This will negate the Government of Pakistan’s investment objectives.

K.E also warned that if due to NEPRA’s action the financial close is delayed, then Karachi and its people will face severe power shortages next summer.