KE’s Turnaround – An example for State-owned Entities

KE’s transformational turnaround success has been acknowledged at various forums – both locally and internationally


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

KE’s Segmented Load-shed Policy – A shift in Mindset