Report

Group Members:
Sumama syed 1811339
Fahad Tariq 1811328

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 Table of Content

Topic Page No.

Executive Summary 3

Introduction 4

Values & Mission 5

Problems and causes 5,6

Recommendations 7

K-Electric

Executive Summary:
This report is on K Electric, which was established in 1913 more than a century
ago. Initially its cause was to provide electricity to the small ports of the city, but
later after independence of Pakistan, Karachi became the economic hub of the
country attracting businessmen from around the country and the population started

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to increase drastically. Due to this the demand for power supply increased than the
supply rate causing many problems like load shedding, low voltage, electricity
theft, bill payments, low electricity generation, old technology, power loss, etc. It
has been quite a difficult journey for K- Electric to make both ends meet. Today
the city is metropolitan city with a massive population and a sole supplier of
electricity. K-Electric (KE) is vertically integrated in generation, transmission and
distribution of delivering energy to the consumers of Karachi. It has a power
generation capacity of 2,267 MW and receives 1,360 MW from external power
producers for around which includes 800 MW from the National Grid. K-Electric
continues to expand its generation portfolio through its own electricity generation.
K- Electric has worked with utmost zeal to meet the requirements of the city, but
still some parts of the city face load shedding. With its new projects at Port Qasim,
RLNF based power plant at Bin Qasim site which is of 900 MW, and penalizing
people who steal electricity will add more to the power grid eradicating load
shedding. The company is on the right path to development and soon following its
vision and mission they will accomplish their goal to provide sufficient electricity
to Karachi.

Introduction:
K-Electric was the first electricity supplier in Karachi and was established on
September 13, 1913, to supply electricity to the small ports. It was set up through
the Indian Company Act of 1882 as the Karachi Electric Supply Corporation. After
it was privatized on November 29, 2005 it got a new management from the
Abraaj Group in September 2009 and the name was changed to Karachi Electric.
During this period KE was set on a fast track to development.

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Values:
At K-Electric, our employees are the key driver of our success. This ethos is
reflected in our values – CARES – which define our corporate culture. KE is a
value-driven company emphasizing the following four pillars:
 Thought Leadership
 Knowledge-based Learning
 Values
 Social Responsibility
Mission:
To generate transmit and distribute electricity for the progress and prosperity of the
city and country.

To exceed our customer’s expectation with reliable, stable and affordable

electricity

To enhance performance, health, safety and wellbeing of people is a priority of KE

and to improve operational and financial performance, for the benefit of our
employees, customers and shareholders.

Problems and Causes:

With a long history of more than a century K-Electric has faced continuous
problems and it has impacted the general population, economy, and growth of the
country. Some problems are enlisted below:

Electricity Generation:

 K-Electric produces electricity from its own generation units with installed
capacity of 2,267 MW and in addition, has arrangements with external
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power producers for around 1,360 MW which includes 800 MW from the
National Grid. While the demand for electricity in Karachi is 4000MW that is
a 373 MW shortage. This will increase to 873 MW in 2023, but its recent
project of 900 MW at port Qasim shall meet these requirements.

Increasing Population:

Initially the city was not so developed and had a low population. The purpose of
K- Electric was to supply power to the small ports of the city, but later the city
became an economic hub and attracted many people from throughout the country.
This caused a massive increase in population making it difficult for K- Electric to
meet the needs of people and from that point it came under pressure for not
meeting the needs of people.

Technology:

Lack of updated technology also is a problem for K-Electric. As the world adapt
new ways to improve their technology, Pakistan lack in this field. Therefore,
K-Electric has to work with old machinery which leads to many other problems.
Thus, creating problems like load shedding, population frustration, power leakage,
etc.

Power Theft:

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A majority chunk of people in the city are from the lower class. They can hardly
provide food and shelter for their families. Therefore, they are forced to connect
illegal connection and steal electricity as life is difficult without electricity and it
has become a need of people. It is an illegal act and is punishable by law,
therefore; K-Electric has special task force to catch these people and punish them.
Many factories steal electricity and does not pay for it.

Recommendations:

 First and foremost, step is to have up-to-date technology as new equipment

is more efficient, productive, and provide ease in work.
 Then they should have a regular check on people and businesses that steal
electricity.
 It is better to maintain the current asset that is providing electricity then
setting up new projects.
 Power leakage is a major problem, which occurs due to old wire and
equipment. A huge amount is lost due to power leakage.
 Govt should encourage more companies to produce electricity as it would
ease burden from K-Electric and more electricity will be available for
everyone.

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References:
https://www.ke.com.pk/our-company/our-vision-mission-and-values/
https://www.ke.com.pk/our-company/who-we-are/
https://en.wikipedia.org/wiki/Geert_Hofstede

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