| Type | Public |
|---|---|
| Industry | Electricity Generation, Transmission and Distribution (installed capacity 1,739 MW) |
| Founded | September 1913 |
| Headquarters |
Karachi, Pakistan Karachi, Pakistan |
| Key people | Tabish Gauhar, CEO ; Nayyer Hussain, COO |
| Revenue | PKR 49.606 billion (2007-08) |
| Total assets | PKR 93.076 Billion |
| Owner(s) | ABRAAJ CAPITAL through KES POWER & The Government of Pakistan |
| Employees | over 17000 |
| Website | www.kesc.com.pk |
Karachi Electric Supply Company Limited (KESC), (formerly Karachi Electric Supply Corporation) was incorporated in 1913 via the Indian Companies Act of 1882. In 1952, the Government of Pakistan (GoP) acquired a majority shareholding of KESC. KESC is the only remaining vertically integrated power utility in Pakistan and has exclusive franchise rights to serve Karachi, Pakistan’s largest city, and its surrounding areas. The Company has about 18,000 employees; its network spans an area of 6,000 square kilometers and serves roughly 2 million customers. Listed on all three of Pakistan’s stock exchanges, KESC has a market capitalization of nearly US$ 725 million and generated revenues of nearly US$ 1 billion in fiscal year 2008.
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To provide one-window service to customers, KESC management launched 27 IBCs (integrated business centers) across Karachi. The IBCs were established after clubbing maintenance centers and billing zones.
In the 1970s and 1980s, Pakistan suffered from intense power shortages, which led subsequent governments to the realization that a serious power crisis was in the offing. With a view towards encouraging private investment in the country’s power sector, the GoP began providing lucrative incentives to foreign investors through various power policies, the first of which was initiated in 1994. Through the 1994 Power Policy, the establishment of Independent Power Producers (IPPs) was encouraged to provide Pakistan with much-needed investment in the power industry.
In 1996, a steep deterioration in KESC’s financial health began, which promoted suggestions for the utility’s transfer into private hands. During the interim between 1996 and 2005, Army management was instated at the state utility with a view towards enhancing the Company’s operational and financial health in May 1999.
During 2002 and 2003, incentives were introduced in preparation for KESC’s privatization, which eventually finalized on November 29, 2005 with a 71% transfer of ownership to a consortium of the Saudi Al-Jomaih Group of Companies and Kuwait’s National Industries Group (NIG), with the government still retaining a 26% stake. The privatized consortium was unable to improve the Company’s financial and operational crisis.
K.E.S.C. started their new Campaign against Electricity Thieves by the name of They Steal We Pay (Urdu: وه كريں ہم بهريں).This campaign warns the thieves that if they steal electricity they would be charge a penalty or be jailed for a long time.K.E.S.C. also offers ordinary citizens to report about any thieve they know or have seen stealing electricity . Although this campaign has a lot of effect on Load-shedding in Pakistan ,but still some citizens blame K.E.S.C. for targeting them.
In the earlier part of 2008, Saudi Al-Jomaih, approached Abraaj Capital, a leading private equity firm based in Dubai, with a proposal for a potential stake in KESC. The deal was eventually finalized in October 2008 at a ticket price of $ 361 million for a significant equity stake in the Company, which grants Abraaj Capital full management control. Abraaj Capital has brought in a professional management team with over 41 senior managers to immediately address the management crisis at KESC. The team is being headed by Tabish Gauhar, KESC’s Chief Executive Officer (CEO).