On Thursday, the National Electric Power Regulatory Authority (Nepra) sanctioned K-Electric’s (KE) Rs392.49 billion investment plan for grid upgrades.
This financial commitment, scrutinized and approved by Nepra, is earmarked for enhancements from fiscal years 2023-24 through 2029-30.
Following the renewal of KE’s power distribution and supply licenses for another 20 years in January, after the previous license expired in July 2023, Nepra has now greenlit the investment funds. Initially, KE proposed an investment of Rs484 billion, refined and submitted to Nepra on January 30, 2023, following regulatory guidelines and the NEPRA Act 1997.
The approval stipulates specific terms, including Nepra’s sole discretion in interpreting the investment plan. Petitioners and stakeholders are directed to contact Nepra directly for clarifications.
Previously, KE anticipated a tariff increase if the requested Rs484 billion were approved, projecting a rise of Rs3.2 per unit. However, Nepra deferred subsidy decisions to the supply tariff proceedings, focusing solely on approving the investment plan.
The approved investment details KE’s allocation of Rs238.22 billion for transmission upgrades and Rs136.76 billion for improving its distribution network over seven years. Additionally, Rs17.31 billion is designated for support projects such as IT and ERP infrastructure.
The transmission network will see major enhancements, including Rs79.694 billion for grid station development and Rs41.112 billion for transmission line expansion. Maintenance and safety upgrades are also planned, and significant funds have been allocated for these purposes.
Nepra has also set targets for reducing Transmission and Distribution (T&D) losses, aiming for a decrease from 14.58% in FY 2023-24 to 12.63% in FY 2029-30.
KE has expressed its intention to work closely with Nepra to ensure the investment plan’s timely execution, which aligns with its goal to increase the share of renewable energy in its generation mix to 30% by 2030.
 has approved a Rs392.49 billion investment plan by K-Electric for significant grid upgrades over the next seven years, aiming to enhance power distribution and supply efficiency across its networks.){kind=link}