Nepra directs K-Electric to halt electricity cuts for paying customers

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has issued a directive to K-Electric, instructing the company to stop penalising paying customers by cutting their electricity supply due to the non-payment of others or the presence of illegal connections.

Furthermore, Nepra has mandated that K-Electric must not delay or discourage applicants seeking net-metering connections by using claims of system inadequacies as a reason.

In two separate orders, the regulatory authority expressed significant concern regarding K-Electric’s practices of delaying and discouraging solar net-metering applications and emphasized the need for the company to adhere to Nepra’s explicit orders for timely service connections, reported Dawn.

Nepra considers this behaviour a deliberate attempt to evade compliance with its directives, labelling it as unacceptable. Such actions not only exemplify clear non-compliance with the authority’s instructions but also deny consumers the rights and benefits they are entitled to under the regulatory framework.

It is important to note that the determination of rates, charges, and terms and conditions related to electricity is solely within Nepra’s purview. No entity, including PPIB, AEDB, or K-Electric, holds the authority to override these regulations through internal guidelines or any other methods.

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Data has indicated that as of September 13, 2024, K-Electric had either rejected or put on hold 399 applications for net-metering connections, attributing this to alleged transformer loading issues. However, NEPRA found that in a majority of these cases, the transformer loading was significantly below the 80% threshold.

The regulator highlighted that integrating net-metering customers into K-Electric’s system would yield several benefits, such as reducing transmission and distribution (T&D) losses through distributed generation, lowering the energy purchase price (EPP), and improving the company’s liquidity by retaining payments owed to net-metering customers for extended periods. These advantages not only benefit K-Electric but also positively impact all electricity consumers served by K-Electric.

Consequently, Nepra has directed K-Electric to promptly process all net-metering applications in accordance with Nepra regulations. If transformer upgrades are necessary, K-Electric is required to take responsibility for executing the requisite upgrades and maintenance to effectively manage the Common Distribution System (CDS).

Nepra insisted on “immediate compliance with this decision to ensure that net metering consumers are not unjustly deprived of their rightful services.” Any failure on K-Electric’s part to comply with this directive will be regarded as a serious infringement of the regulatory framework, with legal action being taken against the company.