ISLAMABAD — In a landmark regulatory shift, the National Electric Power Regulatory Authority (NEPRA) on Friday awarded DHA Energy Supply Company (DESCO), a special purpose vehicle of DHA Karachi, two parallel licences for electricity distribution and as the Supplier of Last Resort (SoLR) for a 21-year term. This represents the first time under the revised Competitive Trading Bilateral Contract Market (CTBCM) framework that a privately owned entity has been granted both distribution and supply mandates, breaking away from the exclusive domain traditionally held by legacy utilities like ex-WAPDA distribution companies and K-Electric. Initially, DESCO’s jurisdiction will be strictly confined to the perimeter of DHA City Karachi (DHACK), situated along the M-9 motorway in District Malir.
The state-owned Central Power Purchasing Agency (CPPA), Gujranwala Electric Supply Company (GEPCO), and K-Electric heavily contested the application, raising objections regarding DESCO’s financial health, technical capabilities, and lack of a proven track record. K-Electric, which holds non-exclusive rights across Karachi until June 2044, was particularly vocal. However, NEPRA overruled the objections, clarifying that amendments to the NEPRA Act purposefully aim to liberalise the energy supply chain by carving out the supply segment from the distribution (wire) business and eliminating historical monopolies. Currently disconnected from the national grid or KE network, DESCO plans to source an initial 6 megawatts (MW) of electricity from Lucky Cement Limited to supply residential and commercial consumers in DHACK, with consumer tariffs subject to strict NEPRA approval.
