K-Electric Reports Steady Gains in 2025 as Karachi’s Power Demand Hits New Highs

K-Electric reported steady progress across generation, transmission, distribution, and customer services in 2025, as the country witnessed signs of economic stabilisation.

In its year-end performance review, the utility highlighted improvements in grid resilience, renewable energy integration, customer facilitation, and digital transformation, while continuing efforts to curb electricity theft and expand industrial connectivity in Karachi.

Speaking on the occasion, Moonis Alvi, Chief Executive Officer of K-Electric, said the company remained committed to customer satisfaction and reliable power supply for the city.

“Karachi is our responsibility. We will continue to serve the city with full dedication,” Alvi said, adding that while the revised Multi-Year Tariff (MYT) presented challenges, KE would work to balance the interests of both the city and the company.

Peak Demand and Supply Stability

During the peak summer of June 2025, Karachi recorded its highest electricity demand at 3,563 megawatts (MW), which was met with a peak supply of 3,545 MW, underscoring the resilience of KE’s power network.

Average demand between January and November stood at 2,353 MW, with winter demand averaging around 1,470 MW and summer demand reaching approximately 2,920 MW, reflecting seasonal consumption patterns and growing urban activity.

Generation and Clean Energy Push

KE’s generation portfolio supported the city’s fluctuating energy needs throughout the year. Alongside optimising existing assets, the utility advanced planning and regulatory processes for future capacity additions aligned with affordability and sustainability.

Through competitive bidding, KE secured Pakistan’s lowest renewable energy tariffs, ranging from PKR 8.9 to PKR 11.6 per unit for 640 MW of clean energy projects. Bid Evaluation Reports for projects at Dhabeji, Winder, and Bela were approved by National Electric Power Regulatory Authority (NEPRA) in May 2025, subject to further regulatory clearances.

Transmission Expansion and Grid Access

KE continued strengthening Karachi’s transmission infrastructure, enabling access to up to 2,000 MW of power from the national grid through the KKI grid and associated interconnections. The move enhanced system stability while facilitating the wheeling of lower-cost electricity to Pakistan’s largest economic hub.

Crackdown on Power Theft

Addressing losses remained a priority. During 2025, KE conducted over 25,000 kunda removal drives, removing nearly 320,000 kilograms of illegal wiring across its service territory by November-end.

Customer Facilitation and Recoveries

As part of its customer-centric approach, KE organised 310 facilitation camps across Karachi, offering assistance with billing, payments, new connections, and meter-related issues. These initiatives helped generate recoveries of approximately PKR 409 million.

Industrial Growth and Net Metering

Supporting Karachi’s industrial base, KE provided 339 new industrial connections, adding a sanctioned load of 136.4 MW by November. These connections catered to manufacturing, textiles, FMCG, ports, and export-oriented industries.

The utility also expanded net-metering facilities, connecting 9,676 customers between January and November 2025 and adding over 230 MW of distributed renewable capacity to the grid.

Digital Transformation and Customer Engagement

KE continued to invest in digitisation, launching Kineto, Pakistan’s first generative AI-powered chatbot by a power utility, now handling nearly 3,000 customer interactions daily.

The company also implemented SAP S/4HANA RISE, strengthening cybersecurity, transparency, and data-driven operations. Digitally connected customers increased to 2.7 million in 2025 from 1.94 million the previous year, while e-billing adoption rose to 13 percent. Nearly 70 percent of bills were paid through digital channels.

KE’s digital initiatives earned industry recognition, including the Grand Prix for Campaign of the Year at the Effie Awards Pakistan 2025 for its energy conservation campaign Farq Parta Hai.

Innovation and Regulatory Developments

In June 2025, KE hosted the Energy Progress & Innovation Challenge (EPIC), attracting over 250 entries from entrepreneurs, researchers, and academia, focused on AI-driven forecasting, asset health diagnostics, theft detection, and renewable integration.

During the year, KE’s MYT was approved but later revised downward by NEPRA. The revision has been challenged in court and remains under adjudication. Separately, NEPRA approved write-off claims of approximately PKR 50 billion for FY2017–2023, recognising them as legitimate costs.

As it enters 2026, K-Electric said it remains focused on strengthening infrastructure, supporting industrial growth, improving recoveries, and expanding digital access, while balancing affordability, reliability, and regulatory compliance.

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