KE’s Turnaround – An example for State-owned Entities
KE’s transformational turnaround success has been acknowledged at various forums – both locally and internationally
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Myths about KE
Myth
Reality
- 1,057 MW added since 2009 and planned projects delayed due to delay in tariff – would have taken KE into surplus
- KE ready to pursue 700 MW project on local coal – tariff notification on hold by GoP, while around 1,500 MW of similar coal projects are being added in the National Grid in the next 4 to 5 years
- Planned additions would have also helped phase away from expensive sources resulting in reduction in tariff – KE to absorb idle capacity available in the National Grid instead of its planned projects
- Despite GoP and SSGC commitment of 276 MMCFD indigenous gas, allocated quantity not being supplied
- Gas supplied to KE is on comingled basis including RLNG at distribution tariff – expensive fuel
- Around 200 MMCFD1 gas from SSGC system being diverted to inefficient captive plants
- Tariff charged to consumers is as per GoP’s Uniform Tariff Policy
- Under the existing regime, GoP has a cross subsidization model where high-end consumers cross subsidize lowend consumers – DISCOs including KE have no role in tariff setting
- Segmented load-shed has inspired a mindset shift and helped KE reduce losses in high loss areas
- KE’s load-shed policy is in line with GoP’s National Power Policy 2013 and is also practiced by other DISCOs across the country
Source: State of the Regulated Petroleum Industry 2017-18
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KE’s Segmented Load-shed Policy – A shift in Mindset
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