K-Electric

K-Electric Limited
FormerlyKarachi Electric Supply Corporation Limited Karachi Electric Supply Company Limited
PSX: KEL
KSE 100 component
IndustryEnergy
FoundedSeptember 1913; 111 years ago (1913-09)
HeadquartersKE House, DHA, Karachi-75500
Area served
Karachi, Sindh, Pakistan
Key people
  • Mark Gerard Skelton (Chairman)
  • Syed Moonis Abdullah Alvi (CEO)
ServicesElectricity Generation, Transmission & Distribution
RevenueIncrease Rs. 519.47 billion (US$1.8 billion)[1] (2023)
Decrease Rs. 52.81 billion (US$180 million)[1] (2023)
Decrease Rs. -30.89 billion (US$−110 million)[1] (2023)
Total assetsDecrease Rs. 1.02 trillion (US$3.5 billion)[1] (2023)
Total equityIncrease Rs. 255.15 billion (US$880 million)[1] (2023)
Number of employees
9,589[1] (2023)
Websitewww.ke.com.pk

K-Electric Limited (KE), formerly known as Karachi Electric Supply Company Limited or Karachi Electric Supply Corporation Limited, is a Pakistani utility company based in Karachi.

Privatised in 2005, KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas[2]. The shares of the company are listed in the PSX out of which, majority shares (66.4%) are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group of Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also one of the major shareholders with 24.36% holding in the company[3].

KE serves power to 3.7 million customers across Karachi, Dhabeji, and Gharo in Sindh, as well as Uthal, Vinder, and Bela in Balochistan[4]. The utility remains connected to its customers 24/7 via digital channels like WhatsApp (0348-0000118), SMS, and social media, and its 118 Response Centre. With over 26 Customer Experience Centers and 35 Customer Facilitation Centers operational, KE ensures seamless support, making customer accessibility and convenience a top priority.[5]

History

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In 1913, the Karachi Electric Supply Company (KESC) was formed to meet the power needs of a small port town called Karachi, then a small fishing village and port town, today one of the largest cities of the world.

In 1952, The Government of Pakistan nationalised KESC in order to facilitate the rapid increase in power demand following a surge in the population of Karachi.

In 1999, Pakistan Army assumed control of the KESC.[6] During the 2002-03 fiscal year, a major restructuring was undertaken, which included swapping Rs83 billion worth of debt for equity.[6] Additionally, KESC reduced its capital by Rs57 billion to address its significant accumulated losses.[6]

In September 2003, the Privatization Commission of Pakistan initiated the sale of a 73% stake in Karachi Electric Supply Company (KESC), inviting expressions of interest from potential buyers.[6] After a year of rigorous due diligence by three pre-qualified bidders, a pre-bid conference was held on October 7, 2004, with the final bidding occurring on February 4, 2005.[6] The consortium of Kanooz al Watan won the bid with an offer of Rs1.65 per share, totaling Rs20.24 billion, but failed to deposit the bid amount by the deadline despite receiving extensions.[6] After unsuccessful attempts to secure payment, the Letter of Acceptance issued to Kanooz al Watan was cancelled and the second highest bidder i.e. the consortium of Hassan Associates was asked to match the bid of Kanooz al Watan and make payment as per the agreed bidding document. Before the payment, consortium was reconstituted to include KES Power Limited in place of some outgoing consortium members. After going through pre-qualification process and making the requisite payments, and with all the relevant approvals, the consortium of Hassan Associates acquired the majority shareholding of 73% in KESC.[6][7] Subsequently, other consortium members divested their investment in KE through open market and KES Power became the single largest shareholder of KE[8]. At present, KES Power has 66.40% shareholding in KE while KES Power itself is owned by Al-Jomaih Power (27.7%), Denham Investment (18.5%) and IGCF SPV 21 (53.8%)[9].

See also

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References

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  1. ^ a b c d e f "K-Electric Annual Report 2023" (PDF). ke.com.pk. Retrieved 29 November 2023.
  2. ^ "Who we are - K-Electric". 17 June 2016. Retrieved 21 February 2025.
  3. ^ "NEPRA notifies relief of PKR 1.23 per unit under November 2024 FCA - K-Electric". 13 February 2025. Retrieved 21 February 2025.
  4. ^ "Who we are - K-Electric". 17 June 2016. Retrieved 17 February 2025.
  5. ^ "Customer Experience Centers - K-Electric". 22 June 2016. Retrieved 17 February 2025.
  6. ^ a b c d e f g Hussain, Dilawar (19 June 2005). "From 'kundaas' to Kanooz". DAWN.COM.
  7. ^ "Long-awaited KESC privatization". 22 February 2005.
  8. ^ Alam, Kazim (26 August 2023). "Why the row over KE's majority ownership?". DAWN.COM. Retrieved 21 February 2025.
  9. ^ Siddiqui, Salman (25 August 2023). "KE dispute reaches international court". The Express Tribune. Retrieved 21 February 2025.
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