20000228

KESC applies for

power distribution

licence

ASIF FAROOQI

ISLAMABAD: Karachi Electric Supply Company has filed a petition with the National Electric Power Regulatory Authority (NEPRA) seeking a distribution licence to supply electricity to the city of Karachi, Nepra officials said.

KESC at present does not have any distribution licence, as it was not required under the regulations. However, the government recently agreed with the Asian Development Bank that the power supply companies, Wapda and KESC, would have to fulfil all formalities required to give these companies a corporate appearance.

According to the conditionalities agreed between the government and the ADB, KESC needs to have three licences Ñ for distribution, generation and marketing. It is likely to apply for the other two licences as soon as it gets one for distribution, the officials said.

"We may not be able to proceed with the licence granting process till the first week of April," acting chairman Nepra, Sardar Sharif, told Business Recorder while confirming that a petition has been received by his office from the KESC. He said Nepra was currently busy with the hearing of a Wapda petition seeking hike in the power tariff. "We have to dispose of some other petitions on similar issues before we can turn to the KESC," Sharif said.

He also said that granting licence to a power distribution company entails a lengthy procedure and may take a couple of months.