Karachi’s DHA City has become Pakistan’s first privately owned housing project authorised to distribute electricity and act as a Supplier of Last Resort.
The National Electric Power Regulatory Authority granted two parallel licences to DHA Energy Supply Company, known as Desco. The move places Desco alongside former Wapda distribution companies and K-Electric, which traditionally handled both functions. Dawn reported 21 years, while licence dates show a 20-year term from October 1, 2026, to September 30, 2046.
Private Power Network for DHA City
Desco’s initial service territory will remain limited to DHA City Karachi, or DHACK. The development lies on the M-9 motorway in Malir district, about 56 kilometres from central Karachi.
Desco told Nepra that DHACK had no infrastructure directly linking it with the national grid or K-Electric network. It therefore reached an understanding with Lucky Cement Limited to procure six megawatts of electricity. The supply will serve residential, commercial and other consumers inside the project through K-Electric’s system.
The distribution licence is non-exclusive. As Supplier of Last Resort, Desco must provide power to eligible consumers who lack another competitive supplier.
Desco cannot determine charges independently. It may recover only Nepra-approved tariffs, including use-of-system and connection charges. The company must also follow consumer service, technical and solvency standards.
Nepra Rejects Objections From KE, CPPA and Gepco
K-Electric, the Central Power Purchasing Agency and Gujranwala Electric Power Company opposed Desco’s applications. They questioned its finances, technical capability and lack of a proven operating record.
Nepra rejected the objections and confined both licences to Desco’s facilities within DHACK. The regulator said amendments to the Nepra Act seek to liberalise Pakistan’s electricity supply chain.
The reforms include de-licensing generation, permitting provincial grid companies and separating electricity supply from the distribution network business. They also remove the exclusivity once enjoyed by established distributors.
K-Electric’s distribution and Supplier of Last Resort licences remain non-exclusive after its monopoly ended in 2023.
DHA Karachi to Back New Energy Company
Nepra acknowledged that Desco had not started commercial operations. The regulator said Desco “is not fulfilling this requirement at this moment however, at the same time its parent company, DHA Karachi, has strong financial credentials and shall bail out its special purpose vehicle whenever required”.
It also cited the common practice of incorporating companies with the minimum capital required by the Securities and Exchange Commission of Pakistan. Firms often increase paid-up capital after operations begin.
Nepra expects Desco’s financial position to strengthen after it launches the business. The licences now place the company under a legal obligation to meet all regulatory and performance standards.
The decision represents an early test of Pakistan’s Competitive Trading Bilateral Contract Market reforms. It may encourage other housing projects and industrial zones to seek regulated electricity distribution arrangements.
