By SKM
January 2, 2026
ISLAMABAD: K-Electric (KE) reported steady progress across its power generation, transmission, and distribution operations during 2025, a year marked by a gradual return of economic stability, as the utility worked to meet Karachi’s growing electricity demand while expanding digital services and renewable energy initiatives.
Pakistan’s only vertically integrated power utility said it successfully managed peak summer demand and continued investing in infrastructure, customer engagement, and cleaner energy, despite regulatory and tariff-related challenges.
Karachi recorded a peak electricity demand of 3,563 megawatts in June 2025, one of the highest in recent years. KE was able to meet most of this requirement, supplying up to 3,545 MW during peak conditions — a performance the company says reflects improved grid resilience during the summer months. Average demand between January and November stood at around 2,353 MW, with consumption fluctuating sharply between winter and summer.
“Our focus remains customer satisfaction and serving Karachi with dedication,” KE Chief Executive Officer Moonis Alvi said, noting that the revised Multi-Year Tariff (MYT) had presented new challenges for the utility. “We will continue to balance what is best for the city and the company.”
On the generation front, KE said it optimised existing assets to meet seasonal demand while moving forward with plans for future capacity additions. A key development during the year was progress on renewable energy procurement. Through competitive bidding, the utility secured some of Pakistan’s lowest renewable tariffs — between Rs8.9 and Rs11.6 per unit — for 640 MW of clean energy projects. Bid Evaluation Reports for projects at Dhabeji, Winder, and Bela were approved by NEPRA in May 2025, with the projects expected to come online over the coming years, subject to regulatory approvals.
Transmission infrastructure also saw expansion, with KE increasing its offtake capacity from the national grid to up to 2,000 MW through the KKI grid and related interconnections. The move is aimed at improving network stability and enabling the flow of cheaper electricity into Karachi, the country’s main economic hub.
At the same time, the utility intensified efforts to curb electricity theft and losses. During 2025, KE carried out more than 25,000 kunda removal drives and removed nearly 320,000 kilogrammes of illegal wiring by the end of November, targeting high-loss areas across its service territory.
Customer engagement remained a key focus. KE organised 310 customer facilitation camps across Karachi, providing on-ground support for billing, payments, new connections, and meter-related issues. These initiatives contributed to recoveries of Rs409 million, underscoring the impact of outreach and awareness on payment behaviour.
Industrial growth also featured prominently in KE’s year-end review. By November, the utility had provided 339 new industrial connections, adding a sanctioned load of 136.4 MW. The new connections supported sectors ranging from manufacturing and textiles to ports and export-oriented industries.
KE also reported continued growth in net metering, reflecting rising customer interest in rooftop solar and distributed generation. Between January and November, nearly 9,700 net-metered customers were connected, adding more than 230 MW of capacity to the network.
Digital transformation accelerated during the year, with KE launching Kineto, a generative AI-powered chatbot offering round-the-clock customer support — the first of its kind by a power utility in Pakistan. The chatbot now handles around 3,000 customer interactions daily. KE also implemented SAP S/4HANA RISE, aimed at strengthening cybersecurity and data-driven decision-making.
Digital adoption rose sharply, with 2.7 million customers connected through digital platforms, up from 1.94 million a year earlier. Nearly 70 per cent of bills were paid through online or alternate digital channels, while e-billing adoption increased to 13 per cent. By early December, more than 1.2 million customers were actively using the KE Live App.
The company’s communication and outreach efforts received industry recognition during the year, including the Grand Prix at the Effie Awards Pakistan 2025 for its energy conservation campaign “Farq Parta Hai.”
On the regulatory front, KE’s Multi-Year Tariff was approved during the year but later revised downward by NEPRA. The company has challenged the revision in court, where the matter remains pending. Separately, NEPRA approved write-off claims of approximately Rs50 billion for the period from FY2017 to FY2023, recognising them as legitimate costs after review.
Looking ahead, KE said it remains focused on strengthening infrastructure, supporting industrial expansion, improving recoveries, and expanding digital access — while navigating regulatory constraints and maintaining affordable, reliable power supply for Karachi. Ends
