DHA City has received two licences from Nepra for electricity distribution and as a supplier of last resort.
The National Electric Power Regulatory Authority (Nepra) has awarded DHA City, located along the M-9 motorway, two significant licences for electricity distribution and as a supplier of last resort (SoLR) for a duration of 21 years. This decision marks a notable precedent as it is the first instance where a private entity, DHA Energy Supply Company (Desco), has been granted such responsibilities under the new regulatory framework.
Desco's distribution licence will primarily cover DHA City Karachi (DHACK), situated approximately 56 kilometers from the city center in district Malir. In its application, Desco indicated that there is currently no infrastructure to connect it to the national grid or the K-Electric network. However, it has arranged to procure six megawatts (MW) of electricity from Lucky Cement Limited, which will be supplied to residential and commercial consumers within DHACK.
Objections raised by K-Electric, Gujranwala Electric Supply Company (Gepco), and the Central Power Purchasing Agency (CPPA) concerning Desco's financial stability and operational capabilities were dismissed by Nepra. The authority noted that the recent amendments to its regulatory framework aim to introduce reforms to liberalize the electric power sector, including the de-licensing of certain segments and the removal of exclusivity in distribution.
Nepra acknowledged that while Desco is a new entity and not yet operational, its parent organization, DHA Karachi, possesses strong financial backing, which could support Desco if necessary. The regulatory body emphasized that the new distribution company must adhere to all legal standards and conditions as it moves forward with its distribution and supply operations.
