ISLAMABAD – Pakistan’s electricity sector witnessed another shift as DHA Energy Supply Company (DESCO) prepares to replace K-Electric as the power supplier for DHA City Karachi after getting 20-year licence from National Electric Power Regulatory Authority (Nepra),
The national power regulatory authority NEPRA granted DHA Energy Supply Company (Private) Limited (DESCO) a 20-year electricity distribution and supply licence, paving way for the company to take over power services in DHA City Karachi from October 1, 2026.
The licences, valid until September 30, 2046, authorise DESCO to operate as both electricity distributor and the Supplier of Last Resort (SoLR) within DHA City Karachi. The company will officially replace K-Electric (KE) after the existing supply arrangement expires on September 30, 2026. The development is expected to dent KE’s consumer base, as DHA residents are widely regarded as top-paying customers.
Nepra approved licences after determining that DESCO possesses the required financial strength and technical expertise to run the network. The company already established key infrastructure in DHA City Karachi, including grid stations, transmission lines and a modern electricity distribution system.
As designated Supplier of Last Resort, DESCO will be legally bound to ensure uninterrupted electricity to every eligible consumer within its service area without discrimination. The company will also be required to step in and supply electricity if any competitive supplier fails to meet its obligations.
The regulator directed DESCO to comply with all applicable laws, tariff determinations, procurement regulations and service performance standards. If the company’s electricity tariff has not been approved before the licences become effective, it must file a tariff petition within 90 days.
The approval comes under Pakistan’s broader electricity market reforms introduced through amendments to the Nepra Act, aimed at breaking the traditional monopoly model by separating electricity supply and distribution while allowing multiple licensed companies to compete in the same market.
DESCO’s licences are non-exclusive, NEPRA says, as other competitive electricity suppliers may also operate in DHA City Karachi as Pakistan gradually moves toward an open and competitive power market.
DESCO, incorporated in March 2017 as special purpose vehicle by the powerful Defence Housing Authority Karachi, has now become the first privately owned entity in Pakistan to secure both distribution and SoLR licenses under the new Competitive Trading Bilateral Contract Market framework.
The company plans to initially procure up to 6 MW from Lucky Cement Limited, with more supply agreements expected from nearby sources. Led by Brig. Sohail Imtiaz as CEO, along with a vast team including finance and K-Electric veterans.
On the other hand, K-Electric’s monopoly in Karachi, which was set to run until 2044, has already been non-exclusive since 2023. The loss of DHA City, a high-recovery, could sting privatized utility. This move could inspire other large housing societies and private players to follow this, potentially accelerating much-needed efficiency improvements in a sector long plagued by losses, circular debt, and unreliable supply.
