Karachi Electric Supply Company
Encyclopedia
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.
, 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.
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.
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).
Government of Pakistan
The Government of Pakistan is a federal parliamentary system, with an indirectly-elected President as the Head of State and Commander in Chief of the Pakistani Armed Forces, and an indirectly-elected Prime Minister as the Head of Government. The President’s appointment and term are...
(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
Karachi
Karachi is the largest city, main seaport and the main financial centre of Pakistan, as well as the capital of the province of Sindh. The city has an estimated population of 13 to 15 million, while the total metropolitan area has a population of over 18 million...
, 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
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of nearly US$ 725 million and generated revenues of nearly US$ 1 billion in fiscal year 2008.
Integrated Business Centers
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.Energy Crises in 1970s and 1980s
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.1996 Army took Control of KESC
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.Privatization
During 2002 and 2003, incentives were introduced in preparation for KESC’s privatizationPrivatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
, 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
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
’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.
They Steal We Pay
K.E.S.C. started their new Campaign against Electricity Thieves by the name of They Steal We Pay .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.
Abraaj Capital
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 CapitalAbraaj Capital
Abraaj Capital is among the world's 50-biggest private equity groups, and invests in the growing Middle East, North Africa and South Asia region, a region also known as MENASA. Abraaj manages about $6.6 billion of funds and stakes in about two dozen companies, including some of the best known in...
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).
See also
- List of electric supply companies in Pakistan
- KESC FCKESC FCKESC are a Pakistani football club of the Karachi Electric Supply Corporation who play in the Pakistan Premier League and is based in Karachi. They were promoted from the Pakistan Football Federation League in 2005, when they finished runners-up to Pakistan Railways FC.-Current Players: -Transfer...
- Electricity sector in PakistanElectricity sector in PakistanElectricity in Pakistan is generated, transmitted, distributed and retail supplied by two vertically integrated public sector utilities: Water and Power Development Authority for all of Pakistan , and the Karachi Electric Supply Corporation for the City of Karachi and its surrounding areas...