With enhanced macroeconomic environment in Pakistan along with investments of approximately Rs 57,188 million, the management of K-Electric (KE) continued to show strong operational performance in the financial statement during the period for the nine months ended March 31, 2021 of the current fiscal, says the experts at KE.
As a consequence, during the period under review, units sent out rose by 7.2 percent along with a 6.2 percent rise in units billed. This was chiefly because of growth in the industrial segment, which recorded 16 percent larger as against to the corresponding period previous year. The official of the Company also mentioned that for over one year, K-Electric has powered Karachi through a network spanning across 6,500 square km, the company supplies power to all residential, commercial, industrial and agricultural regions that fall under the city’s ambit and beyond, serving over 2.5 million customers across the city including Dhabeji and Gharo in Sindh, and Uthal, Vinder and Bela in Balochistan. The experts also recorded in the financial statement that driven through these operational improvements, the Company’s gross profit grew by 25 percent as against to the corresponding period previous year. Further, finance cost for the period was almost 35 percent lower than the comparative period. This was mostly on account of reduction in KIBOR rates, as a result, average borrowing cost for KE declined by almost 5 percent, contributing over Rs 4 billion to the bottom line. It is also said that K-Electric is the only vertically-integrated power utility in the country.
Presently the management of KE is proud to be one of the most dynamic institutions in Pakistan and the organisation aspires to continuously serve Karachi with even greater vigour and purpose with the collective support of all its stakeholders. The officials of the company also said that construction works on 900MW RLNG fired project (BQPS-III) are progressing well despite the Covid-19 pandemic and the first unit of 450MW is over 75 percent complete, with predicted commissioning by peak summer 2021. For supply of RLNG for the 900MW BQPS-III plant, Heads of Agreement with Pakistan LNG Limited (PLL) was inked in October 2020 and negotiations for finalization of GSA is in final stages. Further, following the grant of Transmission License by OGRA in January 2021, KE is pursuing construction works on spur pipeline in an expedient manner and expects to complete the construction of a dedicated pipeline for supply of RLNG to Bin Qasim Complex by May 2021. In addition to pursuing works on the 900MW BQPS III plant on fast-track basis, during the period under review, the company continued to invest in maintenance and rehabilitation of its existing generation fleet. To manage the projected growth in power demand for summer of 2021, in line with Cabinet Committee on Energy (CCoE) decision dated August 27, 2020, required rehabilitation and upgradation works on the 220kV KDA-Jamshoro circuit have been completed in a timely manner by continuous engagements of KE and NTDC teams along with the successful modification to control scheme at NKI known as ‘Cross Trip’ through 100 percent internal resources with approval of NTDC, enabling to safely evacuate up to 1100MW from two existing interconnections.
Furthermore the experts also recorded that, for off-take of remaining megawatts as part of the 1,400MW additional supply committed through Federal Government for Karachi, the process for setting up of new grids and interconnections at 220kV and 500kV level is in progress. In this regard, construction works on 220kV Grid Station and its associated Transmission line at Dhabeji have started with predicted energization through Q4 of FY 2022. For 500kV KKI Grid and its associated transmission line, technical evaluation of bids has been completed and commercial evaluation is in progress. As K-Electric operates under a cost-plus tariff regime, the management remains in continuous engagement with NEPRA to expedite the approval process for required investment in the MYT. The Management of KE has also planned phase wise rehabilitation of existing transmission lines from Hub-Chowki to Bela grid for which 54 percent work of the first phase has already been completed with predicted completion of the first phase through end of FY 2021, while the second phase was initiated in December 2020, and is predicted to complete within a year. In the financial statement the experts further record that, in parallel to rehabilitation, enhancement of grids in Vinder, Uthal & Bela is planned to include upgradation from 66kV to 132kV levels along with commissioning of new lines to raise the transformation capacity, reliability and bringing this loop to n-1 contingency.
Moreover, investment is planned to increase reliability and competence of the transmission network through rehabilitation projects. In this regard, projects for installation of new power transformers, replacement of conductors, RTV coating on insulators and replacement of existing insulators with composite type are in pipeline. As of now around 25 percent of the 220 kV EHT network which is near the coastal belt has been upgraded with RTV coated insulators enhancing reliability of the circuits. Similarly it is also recorded that critical circuits of 132 kV are also being planned in next year to be upgraded through replacement of conductor(s) to enhance the ampacity. 80 MVA transformation capacity has been presently added after successful completion of Mehmoodabad grid station which will also provide a feedback option to 11 kV ring of Baluch area; imperative to cater rapid residential growth. In the distribution segment, KE continued with its initiatives aimed at loss reduction, safety enhancement and network improvement. Aerial Bundle Cabling (ABC) roll-out continued with over 1,180 Pole Mounted Transformers (PMT) converted to ABC till Q3 FY 2021, and KE aims to convert all high loss PMTs to ABC by 2023, combined with community engagement and upliftment initiatives.
It is also recorded that under project Sarbulandi, till Q3 of FY 2021, KE has successfully removed hook connections weighing almost 150,000 kg from dissimilar high loss pocket areas along with installation of approximately 93,000 meters by Mobile New Connection Van (MNCV) and 57,000 Asaan Meters in targeted areas.