K-Electric Ltd. · PSX:KEL
K-Electric — Investor Presentation (June 2025)
26 slides from K-Electric's investor presentation, Jun 2, 2025
Slide 1: Corporate Briefing Session
CORPORATE BRIEFING SESSION June 02, 2025
Slide 2: Our Vision and Mission
Our Vision To restore and maintain pride in KE, Karachi and Pakistan. Our Mission Brightening lives by building the capacity to deliver uninterrupted, safe and affordable power to Karachiites.
Slide 3: KE Overview
KE OVERVIEW We
Slide 4: KE Overview
KE Overview The only vertically integrated power utility company in Pakistan, KE has a robust network to ensure sustainable and reliable power supply to Karachi and its adjoining areas Customers Presence Across the Entire Power Value Chain 3.7 Million Area 6,500km2 Generation Transmission Distributi
Slide 5: KE's Privatization: Investments & Improvements
KE’s Privatization: Investments & Improvements Since privatization in 2005, investments of USD 4.6 Billion have been made upto FY 2024 in power infrastructure resulting in significant improvements across the power value chain. KE’s post privatization operational improvements have been recognized at
Slide 6: KE's Privatization: Investments & Improvements
KE’s Privatization: Investments & Improvements Since privatization in 2005, investments of USD 4.6 Billion have been made upto FY 2024 in power infrastructure resulting in significant improvements across the power value chain. KE’s post privatization operational improvements have been recognized at
Slide 7: Operational Improvements since KE Privatization
Operational Improvements since KE Privatization 2005 2024 Change Generation Capacity (MW) Addition - 1,957 1,957 Generation Fleet Efficiency - Gross 30% 46% ↑ 16% points Grid Stations 52 74 ↑ 22 Transmission Capacity (MVAs) 3,480 7,095 ↑ 104% Load-shed Exempt Areas 6.6% 70% ↑ 63.4% points Distributi
Slide 8: Multi Year Tariffs Overview
MULTI YEAR TARIFFs OVERVIEW We
Slide 9: Tariff Structure
Tariff Structure A B C Determined Tariff Consumer Tariff Tariff Differential Claim Set by NEPRA for a Set by the Ministry of Hence, there is no period of seven years Energy (MoE) which is subsidy or benefit which includes a also uniform across all provided to KE, in fact, mechanism of Pakistan based
Slide 10: Determined Tariff Methodology by Segment
Determined Tariff Methodology by Segment GENERATION TRANSMISSION DISTRIBUTION SUPPLY Control Period 7 years for all plants 7 Years except BQPS-III Two-part tariff: 1) EPP - O&M (net of other income) - Fuel Cost - Depreciation - Variable O&M - O&M (net of other - Cost of Debt 2) CPP income) COST - Wo
Slide 11: Salient Features - Generation
Salient Features - Generation Description KE Ask NEPRA Determination • Two-part (EPP & CPP) Take-or-Pay Tariff approved • Two-part (EPP & CPP) Take or Pay Tariff on all fuel including HSD, Tariff Structure • Responsibility of Fuel arrangement on KE and Capacity payment similar to IPPs, linked with f
Slide 12: Salient Features - Generation
Salient Features - Generation Description KE Ask NEPRA Determination KE asked to consider ToP fuel commitments for BQPS III RLNG (or • NEPRA has allowed ToP post increase of Supply from National Fuel Take or Pay any future agreement) and allow operations under ToP Grid or Implementation of Central D
Slide 13: Salient Features – Transmission, Distribution & Supply
Salient Features – Transmission, Distribution & Supply Description KE Ask NEPRA Determination Control Period KE requested a 7-year control period for the tariff 7-year control period for the tariff determination. Duration determination. USD-based cost of equity of 15% for the Transmission NEPRA allo
Slide 14: Salient Features – Transmission, Distribution & Supply
Salient Features – Transmission, Distribution & Supply Description KE Ask NEPRA Determination Allowed as per standard except: - cash & bank restricted to 15 days and actual spread with a cap of 1%. Working Capital Requested as per standard. - Working capital on opening receivable disallowed. - Worki
Slide 15: Summary of Determined Tariff FY 2024
Summary of Determined Tariff FY 2024 Capacity Purchase Price (CPP) Energy Purchase Price (EPP) 12.76 19.20 PKR/KWh PKR/KWh 2.86 39.98 3.31 Transmission Charges Distribution Charges PKR/KWh PKR/KWh PKR/KWh 2.29 (0.44) Supply Charges PKR/KWh PKR/KWh Prior Year Adjustment
Slide 16: Some Facts on Power Sector & KE
SOME FACTS ON POWER SECTOR & KE
Slide 17: KE – A role model for privatization of DISCOs
Some Facts on Power Sector & KE KE – A role model for privatization of DISCOs • In Pakistan Power sector, recovery loss is a major issue which is resulting in increase in burden on consumers and government. • Below is the XWDISCOs recovery losses and AT&C losses for FY24: HESCO PESCO IESCO SEPCO LES
Slide 18: Non-provision of local gas is the only cause for higher KE tariff
Some Facts on Power Sector & KE Non-provision of local gas is the only cause for higher KE tariff • Below is the summary of KE’s tariff versus XWDISCO’s tariff: DISCOs KE Components Base Tariff FCA / QTA Total Base Tariff FCA Total Energy Charge 7.63 2.96 10.59 19.2 1.37 20.57 Capacity & Transmissio
Slide 19: Other Key Matters Update
= <x a ou 2 ”n [34 rT EC <x = > Lu 4 ~ rT) c = e} We
Slide 20: Other Key Matters Update
Other Key Matters Update T&D Investment Plan • Decision on the investment plan was issued in April 2024. • Amount approved in the decision is PKR 392,290 Mn. • KE team filed Motion for Leave for review of Investment Plan on May 13, 2024 outlining matters for Authority’s consideration Write-off Claim
Slide 21: Operational Performance
lu UV Zz <x = [34 ie) re ~ TT) a <x Zz o < ~ TT) a (e) We
Slide 22: Operational Performance
Operational Performance Sent-out (GWh) T&D loss (%) 17,886 ↓2.6% 18,357 16.0% ↑ 0.7 pp 15.3% 14.4% ↑ 0.6 pp 13.8% 12,872 ↑ 1.0% 12,748 9M FY 25 9M FY 24 FY-24 FY-23 9M FY 25 9M FY 24 FY-24 FY-23 Increase in T&D loss is primarily due to sent-out mix deterioration, as sent- Overall consumption in FY-2
Slide 23: Renewable Initiatives
RENEWABLE INITIATIVES
Slide 24: Renewables: 30% of Generation Capacity by 2030
Renewables: 30% of Generation Capacity by 2030 KE is committed to adding cheaper and greener energy in its system – in a landmark achievement, KE becomes the first to successfully complete the competitive bidding on its 640 MW renewable projects. SOLAR Adding 868 MW 1,282 MW Renewables Competitive B
Slide 25: Competitive Bidding - 640 MW Renewable Projects
Competitive Bidding - 640 MW Renewable Projects KE is committed to adding cheaper and greener energy in its system – in a landmark achievement, KE becomes the first to successfully complete the competitive bidding on its 640 MW renewable projects. Project Successful Bid 100 MW Solar Project at Bela
Slide 26: Thank You
THANK YOU Lorem ipsum dolor sit amet