Nepra Overrules KE Gepco And CPPA Objections To Grant DHA Energy Supply Company Dual Licences Under CTBCM Regime For DHA City On M-9 Motorway
According to Dawn, the National Electric Power Regulatory Authority has granted DHA Energy Supply Company, a special purpose vehicle of DHA Karachi, dual licences — electricity distribution and Supplier of Last Resort — for 21 years covering DHA City Karachi, located approximately 56 kilometres from Karachi city on the M-9 motorway.
This is the first time any private entity outside the legacy ex-Wapda distribution companies and K-Electric has received both licences simultaneously under the Competitive Trading Bilateral Contract Market framework, a milestone in Pakistan’s ongoing power sector liberalisation.
Desco applied after confirming no grid or KE network connection was available nearby, reaching an understanding with Lucky Cement Limited for procurement of six megawatts of electricity to serve residential and commercial consumers in DHACK through KE.
Nepra overruled objections from K-Electric, Gepco and the Central Power Purchasing Agency, which had challenged Desco’s financial health, technical capability and lack of operational track record. The regulator cited DHA Karachi’s strong financial credentials and noted that the CTBCM reforms specifically envisaged breaking the distribution segment monopoly to allow competitive private participation.
The power sector reform that planners debated for years just found its first real-world test case. Watch DHA City closely.
Check out our previous coverage of Pakistan’s energy sector on The Trusted Times.
