Electricity and Gas prices to triple as subsidies for rich remain

[Cricket Warrior]

The caretaker government on Wednesday conceded to the conditions of the International Monetary Fund (IMF), resulting in a notable increase in gas tariffs across Pakistan, ARY News reported.

According to reliable sources, there will be a Rs 100 per mmbtu increase for protected consumers, while non-protected consumers will experience a more substantial hike of Rs 300 per mmbtu.

Similarly, commercial consumers of gas will face a considerable Rs 900 increase in prices per mmbtu, as per the sources.

The CNG sector is also not exempt from this adjustment, with sources indicating a significant Rs 170 per mmbtu price hike. Furthermore, fertilizer factories will experience a slight increase in gas tariffs.

 

[BouncerGuy]

Nepra seeks Discos’ accountability for overbilling

Dissatisfied with power companies’ response to massive overbilling of consumers in July and August last year, the National Electric Power Regulatory Authority (Nepra) on Wednesday announced that it would hold distribution companies (Discos) accountable.

During a public hearing presided over by Nepra Chairman Waseem Mukhtar, the regulator expressed concern that the Discos were seeking over Rs85bn in recovery from consumers in three months, mainly as capacity charges. Meanwhile, applications for new connections that would utilise around 1,100MW in capacity remained pending.

Members were more flabbergasted over the managements of power companies, particularly chief executive Central Power Purchasing Agency (CPPA) for showing casual behaviour and poor preparedness in responding to questions during the hearing.

The hearing was convened to consider the Discos’ claim of another Rs85bn for the second quarter of the current fiscal year, to be charged to consumers nationwide at the rate of about Rs4.5 per unit for three months.

Nepra’s case officers reported a 12-13 per cent decline in electricity consumption during the fortnight. Nepra members expressed displeasure over the absence of CEO of CPPA and the power division for not attending the public hearing when their questions about the reason behind decline in consumption in areas other than industrial sector.

Nepra member Rafique A. Shaikh said the load-shedding was taking place across the country, and consumers were bearing the heavy cost of capacity payments, yet power companies were not showing interest in extending new connections. The hearing was told that pending application for new connections were equivalent to 1,100MW.

Nepra chairman said it was a matter of serious disappointment that questions raised during the hearing remained unanswered. He said the regulator had facilitated the power companies and consumers through online public hearing, but the CEOs of power companies were even unavailable online while their petitions were being heard.

He directed that CEOs of power companies should personally and physically attend the next hearing, and the alternate staff, in the absence of a CEO, should be well-prepared.

The regulator said the responses from the distribution companies over excessive billing, as established in an investigation report, were unsatisfactory and it had now decided to issue formal show-cause notices within a couple of days. It said the matter would be concluded within a month. It may be recalled that an investigation team had found the Discos to be overcharging consumers to the extent of 100pc in July-August 2023 through extended billing cycles etc.

In their separate tariff petitions, the Discos had sought to raise about Rs85bn from their consumers over the next three months under quarterly tariff adjustment (QTA) for the Oct to Dec 2023 period. This is also on top of about Rs6.5 per unit monthly fuel cost increase for the billing month of Feb, which is currently pending a decision by the regulator.

The quarterly adjustments for Discos are now automatically applicable to KE’s consumers, as well as per recent decisions of the government and the regulator.

The increase had been sought by the Discos to finance the additional financial impact of capacity charges arising out of currency devaluation and interest rate hike, besides the market operator fee, the impact of transmission and distribution losses on fuel cost adjustments, the cost of incremental consumption and variable operation and maintenance charges for the second quarter of the current fiscal year.

At present the consumers are paying about Rs3.28 per unit QTA for 4th quarter of the last fiscal year, which will remain applicable for six months — October 2023 to March 2024 — so as to mop up more than Rs200bn across the country, including K-Electric. Another QTA for July-Sept 2023 is also being charged to consumers at the rate of Rs1.15 per unit for the billing period of Jan to March 2024 to raise another Rs22.3bn.

The biggest chunk of additional cumulative burden on account of capacity charges has been claimed by Discos at Rs78bn for the quarter, followed by Rs11bn on account uncovered impact of transmission and distribution losses and Rs6.6bn on account of use of service charges and market operator fee. On the other hand, Discos have offered Rs8.7bn worth of negative variable O&M charges and Rs2.34bn of impact of incremental sales, thus working out a cumulative net additional demand of Rs85bn.

Upon approval, the adjustment would be recovered on uniform basis from all consumers except for lifeline users. Under the tariff mechanism, changes in fuel cost are passed on to consumers only on monthly basis through automatic mechanism, while quarterly tariff adjustments on account of variation in power purchase price, capacity charges, variable operation and maintenance costs, use of system charges and including impact of transmission and distribution losses are built in the base tariff by the federal government.

SOURCE: DAWN

 

[BouncerGuy]

If this trend of hikes continues, those days are not far when electricity prices will cross 100 rupees per unit for domestic users and poor people. Back to stone age is what Pakistan is heading towards atm

----------------------

Another power tariff hike on the cards

Electricity consumers may soon face a heavier financial burden as the Central Power Purchasing Agency (CPPA) has requested a significant increase in electricity prices.

In their application submitted to the National Electric Power Regulatory Authority (Nepra), the CPPA has proposed an increase of Rs7.13 per unit, citing the need for a fuel adjustment for January.

If approved by Nepra, this hike could translate into an additional burden of Rs80 billion on the already strained shoulders of electricity consumers.

The Nepra Authority is scheduled to convene on February 23 to deliberate on the CPPA's application, a decision that will significantly impact millions across the country.

The dynamics behind this proposed increase shed light on the complexities of power generation in Pakistan. In January alone, the costliest source of electricity was diesel, priced at Rs45.60 per unit, accounting for 10 million units of production.

Furnace oil, generating seventy-five crore units, stood at Rs35, while electricity imported from Iran was priced at Rs32.80 paise per unit. Overall, a staggering Rs7 billion units of electricity were generated during the month.

With preparations for connecting electricity consumers now complete, the looming prospect of increased tariffs underscores the challenges faced by both the government and the populace in balancing the need for sustainable energy solutions with the economic realities on the ground

SAMAA

 

[Cricket Warrior]

Electricity tariff increased by Rs7.5 per unit

In another shock to the already overburdened power consumers, the National Electric Power Regulatory Authority (NEPRA) has notified a hike of Rs7.5 per unit in the price of electricity as part of the fuel price adjustment (FCA).

According to NEPRA notification, the power sector’s regulatory authority approved increase in the electricity tariff by Rs7.5 per kilowatt hour (kWh) under the head FCA of January 2024 and this hike in power tariff will be charged to power consumers during the month of March 2024.

The increase will be applicable to all the consumer categories except lifeline consumers and the power consumers of K-Electric (KE). The hike in the power tariff will cause Rs66 billion worth additional burden on the already burdened power consumers.


ARY News

 

[Cricket Warrior]

The Caretaker federal government has decided to empower the National Electric Power Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA) to fix electricity and gas tariffs respectively without the government’s approval, ARY News reported.

According to details, the caretaker government has decided to end the government’s role in the regulation of gas, electricity, and petroleum products prices.

The sources privy to the development said that the federal cabinet through circulation approved amendments in separate rules of the OGRA, NEPRA, and Petroleum Division.

 

[BouncerGuy]

This is something to be ashamed of, not to take credit for it. Pathetic

----------------------------

Energy minister takes credit for ‘painful’ gas price hikes

Outgoing caretaker Minister for Power and Petroleum Muhammad Ali on Tuesday identified recent “painful” gas pricing reforms among the best achievements despite difficulties to the consumers and conceded inability to negotiate debt relief from foreign independent power producers (IPPs) chiefly from China during over six-month stint.

Speaking to journalists before leaving the office, he said the biggest challenge to energy prices emanated from the exchange rate and unless Pakistan stabilised it, the pricing of both gas and electricity would remain unaffordable to consumers, particularly the industrial sector.

He conceded that the caretaker government could not provide relief to the consumers in terms of lower prices but its policy actions to tap gas supply from unconventional fields and improved cash flows of exploration and production companies and gas utilities would reduce import dependence and foreign exchange losses.

The minister said the caretaker government had formulated a power tariff rationalisation plan to allow reduced rates for industry through lower cross-subsidy. At present, the overall cross-subsidy stood at Rs473bn, which would come down to Rs273bn through this plan because unless the industry was able to operate, exports would not grow and foreign exchange inflows would remain stagnant and thus exchange rate would be under pressure. The power would be provided directly through the competitive trading model because the only thing for the electricity rates not to go further up was the currency rate to remain stable.

The minister conceded that one of the major issues relating to expensive electricity — renegotiations with Chinese IPPs for extension in debt tenor — could not be taken up by the caretaker government. He said total payables to Chinese power producers currently stood at Rs511bn. He said the painful gas pricing reforms in two phases had stopped the flow to the circular debt, although circular debt stock of about Rs2.3 trillion was a major challenge for the upcoming government to address. Besides Rs2.3tr gas sector debt, another Rs2.4tr debt stock also exists in the power sector.

Mr Ali said the interim government had been able to induct about 152 million cubic feet of additional gas per day (mmcfd) into the system that had been hampered for years by different issues while another 280mmcfd would also come in during the current calendar year.

SOURCE: DAWN

 

[BouncerGuy]

LPG price reduced slightly

Because of exchange rate gains over the past month, the Oil and Gas Regulatory Authority (Ogra) on Friday slightly reduced the price of liquefied petroleum gas (LPG).

Both local and imported LPG rate was reduced by 81 paise per kg, bringing the cost of 11.8kg domestic cylinder down by Rs9.51 or 0.31pc for March.

In a notification, Ogra set the price of LPG at Rs215.49 per kg for March instead of Rs216.30 per kg in February. As such, the price of 11.8kg domestic cylinder was set at Rs2,542.78 against Rs2,552.30 last month. The cylinder price has gone up from Rs2,322 since June last year.

On the other hand, the price of a commercial cylinder (45.4kg) was reduced by Rs36 to Rs9,783.24 against Rs9,820 in February. Its price has gone up from Rs8,939 since June last year.

The regulator had historically been determining the local pricing because of very limited imports of about 20pc. The traders and LPG dealers, however, started charging the prices of both products at higher rates by deceiving the consumers that they were supplying imported products because of the non-availability of local gas. As a consequence, Ogra was given the power in May last year to also fix the uniform rate for local and imported LPG.

Now that the situation had changed drastically with a share of imports increasing to almost 50pc, Ogra had ad now started determining the same price for both local and imported products as it could not be differentiated in the market if the consumers get local or imported LPG.

Therefore, it had “notified the maximum price of indigenous LPG which shall be regulated at the maximum price at all levels of the supply chain for indigenous as well as imported LPG”.

SOURCE: DAWN

 

[Cricket Warrior]

SHC stays govt’s gas tariff hike order

The provincial high court in Sindh has stayed the federal government’s decision to increase gas prices for industrial units. It has also ordered the federation, the Oil and Gas Regulatory Authority (Ogra) and the Sui Southern Gas Company (SSGC) to submit written arguments in support of the hike.

The hearing of petitions filed by over 400 companies against the caretaker government’s notifications to increase gas tariffs for industries resumed before a single-member bench of Justice Mahmood A Khan on Thursday.

The petitioners' lawyer argued that according to the law, the province which produces a resource has the primary right to use it. He said Sindh produces the most gas in the country.

He noted that the caretaker government was not entitled to increase gas prices. “A caretaker government is supposed to handle day-to-day affairs. It cannot make decisions on major policy matters.”

The federal government’s counsel stated that the caretaker government increased gas prices to boost revenue in compliance with a condition of the International Monetary Fund (IMF).

Justice Khan inquired from the counsel as to what was the agreement between the government and the IMF. He noted that the copy presented in court was not an agreement but a press release issued by the Fund.

“According to the press release, the IMF’s condition was related just to increase in revenue, and it was the caretaker government's own recommendation to raise gas prices and taxes," he said.

SHC stays govt’s gas tariff hike order | The Express Tribune

Directs federation, OGRA and SSGC to submit written arguments till March 14

tribune.com.pk

 

[Cricket Warrior]

SHC stays govt’s gas tariff hike order

The provincial high court in Sindh has stayed the federal government’s decision to increase gas prices for industrial units. It has also ordered the federation, the Oil and Gas Regulatory Authority (Ogra) and the Sui Southern Gas Company (SSGC) to submit written arguments in support of the hike.

The hearing of petitions filed by over 400 companies against the caretaker government’s notifications to increase gas tariffs for industries resumed before a single-member bench of Justice Mahmood A Khan on Thursday.

The petitioners' lawyer argued that according to the law, the province which produces a resource has the primary right to use it. He said Sindh produces the most gas in the country.

He noted that the caretaker government was not entitled to increase gas prices. “A caretaker government is supposed to handle day-to-day affairs. It cannot make decisions on major policy matters.”

The federal government’s counsel stated that the caretaker government increased gas prices to boost revenue in compliance with a condition of the International Monetary Fund (IMF).

Justice Khan inquired from the counsel as to what was the agreement between the government and the IMF. He noted that the copy presented in court was not an agreement but a press release issued by the Fund.

“According to the press release, the IMF’s condition was related just to increase in revenue, and it was the caretaker government's own recommendation to raise gas prices and taxes," he said.

SHC stays govt’s gas tariff hike order | The Express Tribune

Directs federation, OGRA and SSGC to submit written arguments till March 14

tribune.com.pk

Hike in industrial unit price means more inflation.

 

[Cricket Warrior]

SNGPL seeks 147% hike in gas price

The Sui Northern Gas Pipelines Limited (SNGPL) has sought from the Oil and Gas Regulatory Authority (Ogra) to increase the gas prices by 147%, which would multiply the burden on the already inflation-hit people.

The utility company serves over 7.22 million consumers in Punjab, Khyber Pakhtunkhwa and Azad Jammu & Kashmir.

According to the report, the company has requested an increase of Rs2,646.18 per metric million British thermal unit (mmbtu) in gas price and asked that the new average gas price be fixed at Rs4,446.89.

Facing an estimated revenue shortfall of Rs189.18 billion, it has requested to implement the enhanced gas price from July 1.

The petroleum sector regulator will hear the SNGPL plea on March 25 in Lahore and on March 27 in Peshawar.

It may be noted that the SSGC has also submitted a request to the regulator for further hike in gas price, seeking an increase of Rs274.40 per mmbtu.

On March 17, a month after the caretakers burdened the masses with gas price hike on the International Monetary Fund’s (IMF) demand, the SSGC had requested the Ogra to further increase gas prices from July 2024.

The caretaker government had approved a 67% increase in the natural gas tariff with effect from February 1. The tariff was hiked to meet the deadline of the IMF for hiking the gas prices under structural benchmark criteria till February 15, 2024.

Citing an estimated Rs79.63 billion revenue shortfall, the SSGC had urged the Ogra to set average price of one mmbtu gas at Rs1740.80.

A public hearing on the petition is scheduled on March 18 in Karachi, during which the regulatory authority will determine the gas prices. The Ogra will also hear the petition in Quetta on March 20.


The News

 

[BouncerGuy]

Power consumers brace for tariff surge

Power consumers should brace themselves for another massive hike in electricity tariffs as six power utilities—DISCOs—have sought a revenue requirement of Rs967 billion on account of the indexation of tariff components and other costs for the year 2024-25.

Indexation of tariff components refers to the practice of adjusting or linking various components of a tariff—such as prices, fees, or charges—to an index or benchmark. This index could be based on factors like inflation rates, cost of living adjustments, or changes in market conditions.

The purpose of indexation is to ensure that tariffs remain aligned with prevailing economic conditions and to provide a mechanism for periodic adjustments to reflect changes in the underlying factors affecting costs or prices.

In separate multi-year tariff petitions submitted to the National Electric Power Regulatory Authority (Nepra), these DISCOs have sought revenue requirements.

Nepra—the power regulator—has already determined tariffs for these DISCOs under the Multi-Year Tariff (MYT) regime for a period of five years—from FY 2020-21 to FY 2024-25.

The MYT regime is a regulatory framework used in the energy sector, particularly in electricity distribution, to set tariffs for a period spanning multiple years, typically ranging from three to five years.

Under the MYT regime, instead of setting tariffs annually, regulatory authorities establish tariffs for a defined period based on factors such as projected costs, investments, and revenue requirements.

Now, in line with the adjustment mechanism provided in its notified MYT determination, the Consumer End Tariff Methodology (Guidelines), 2015, and the amended Nepra Act, the DISCOs have filed requests for indexation of different components of their revenue requirement for FY 2024-25.

In its petition, Gepco has sought a total revenue requirement of Rs376.2 billion, which includes Rs15.5 billion for salaries, Rs13.1 billion for post-retirement benefits, Rs47.8 billion gross margins, Rs43 billion as net margins, and Rs19 billion as a prior-year adjustment.

Mepco has sought a revenue requirement of Rs160 billion for the indexation of tariff components and other costs for the year 2023-24. It has sought an amount of Rs20.9 billion for pay and allowances, Rs24 billion for post-retirement benefits, Rs78.3 billion for gross margin, and Rs72 billion on account of net margins.

Qesco has sought Rs236 billion in revenue requirements, which include Rs9.1 billion for pay and allowances, Rs2.68 billion for post-retirement benefits, Rs31.8 billion for gross margin, and Rs29 billion on account of net margins. Rs13.9 billion has been sought on account of a prior-year adjustment.

Tesco has sought a revenue requirement of Rs92 billion. It wants Rs1.47 billion for pay and allowances, Rs565 million for post-retirement benefits, Rs6.8 billion for gross margin, and Rs6.30 billion on account of net margins. Rs941 million and Rs8.17 billion are sought respectively as wheeling charges and a prior-year adjustment.

Pesco has sought Rs67.2 billion in revenue requirements, including Rs18.8 billion for pay and allowances, Rs14 billion for post-retirement benefits, Rs57.7 billion for gross margin, and Rs52.6 billion on account of net margins. Rs10.6 billion has been sought on account of a prior-year adjustment.

Sepco seeks a revenue requirement of Rs35.7 billion, including Rs20.6 billion for operation and maintenance costs, Rs1.8 billion for depreciation costs, Rs28.9 billion for gross margin, Rs26.5 billion on account of net margins, and Rs9.2 billion on account of a prior-year adjustment.

The DISCOs have approached Nepra to allow an increase in electricity rates to recover billions of rupees from consumers. The power regulator will hold a public hearing on these petitions on April 2

SOURCE: Express Tribune

 

[shaz619]

The energy price cap typically comes down from April in the UK.

People are still probably paying way more than we ever did before though.

 

[Cricket Warrior]

Economic journalist Shahbaz Rana thinks there could be Rs5 to Rs7 per unit in the electricity rate in July, but clarified that it was too early to say anything before the National Electric Power Regulatory Authority hearing.


AAJ News

 

[The Bald Eagle]

PDM 2.0 continuing from where the left the government
=====
The National Electric Power Regulatory Authority (Nepra) on Thursday allowed the federal government to increase electricity rates by Rs2.75 per unit for all consumers across the country for three months — April to June — with additional revenue impact going beyond Rs85 billion.

The increase was allowed under quarterly tariff adjustment for the second quarter — October to December 2023 — of the current fiscal year.

Documents released by the authority on its website said the increase would apply to all consumer categories, except lifeline consumers, including both consumers of ex-Wapda distribution companies and K-Electric.

A letter said the authority’s decision was being sent to the federal government for intimation and action before its notification by Nepra.

The authority said it had applied the hike “in the interest of consumers” from April onwards after the expiry of existing applicable quarterly adjustments in March.

Source: Dawn News

 

[FearlessRoar]

NEPRA has increased the cost of electricity by Rs 4 and 92 paise per unit.

The National Electric Power Regulatory Authority (NEPRA) has increased the price of electricity by Rs 4.92 per unit for a month.

Nepra has issued a notification to increase the price of electricity, the price increase is due to the February monthly fuel adjustment, which will not be applicable to Lifeline and K Electric customers.

Consumers will have to make additional payments in April electricity bills.

ARY

 

[FearlessRoar]

PTI and PDM experiment brought nothing to Pakistan but Economic and political destabilisation. Inflation in country is now record high in last 50 years. Petrol , electricity, gas and everything related to these are now beyond public's buying power.

 

[hassan918]

Under IMF diktat: Govt set to bring gas tariff for CPPs on a par with RLNG price from July 1​

ISLAMABAD: The International Monetary Fund (IMF) has asked the government to increase the gas tariff for captive power plants (CPPs) on par with the price of Re-gasified Liquefied Natural Gas (RLNG) from July 1, 2024-25.

“The government has no option but to increase gas price for captive power plants on par with the RLNG prices. These plants have 30-35 per cent efficiency and most of the CPPs are installed in Sui Southern network,” senior officials of the Energy Ministry told The News.

The government functionaries, they said, had sought time from the IMF up to December 2024 for switching the CPPs on to national electricity grids, as many of them are not connected with the national grid. However, the IMF is asserting that the task should be completed by June 2024 with increase in their tariff up to the price of RLNG to be applicable from July 1, 2024.

“The gas tariff for captive power plants currently stands at Rs2,750 per MMBTU. The said plants, by using the natural gas as input fuel, not only generate electricity for their industrial consumption but some of them also sell electricity generated by the natural gas to electric power distribution companies (DISCOs).”

When asked which consumers of gas would face the hike in tariff when the Oil and Gas Regulatory Authority (OGRA) will increase the gas tariff through its determination to meet the revenue requirements of Sui gas companies in 2024-25, the official said the government has made up its mind to increase the gas tariff of captive power plants under the IMF diktat. In addition, the government is also pondering on increase in gas tariff for the power sector, as the existing gas price for power plants stands at Rs1050 per MMBTU.

The Sui Southern had asked for an increase in gas price by Rs274.4 per MMBTU, but Sui Northern pleaded for a massive increase of Rs2,646.18 per MMBTU from July 1, 2024, putting the gas price at Rs4,447 per MMBTU. The gas companies have included the previous years’ shortfall of Rs600 billion in their petitions, asking for a massive increase from July 1, 2024. The government officials are of the view that OGRA would come up with the marginal increase in tariff, may be in the range of 10-15 per cent hike with the impact of Rs100-150 billion in the tariff against the lofty assumptions in the petitions of Sui gas companies.

“The top functionaries have identified the power plants that include Guddu power plant, KE power plant, Nooriabad power plant and Engro Power of which the gas tariff will be increased. Guddu power plant is getting 180 mmcfd natural gas at the cost of Rs1,050 per MMBTU, KE power plant 10 mmcfd, Nooriabad power plant 20 mmcfd and Engro power plant 35mmcfd gas. The gas tariff for the power sector has not been increased since January 2023 despite two hikes in gas tariff, one from November 1, 2023 and second from February 1, 2024.”

However, in the domestic sector, high-end consumers, are already paying high tariffs not only at par the RLNG price but also more than that. The government, last time, also increased the gas tariff of protected consumers by up to 67 per cent.

The federal government does not want to further increase the gas tariff for protected and other domestic consumers. The industrial tariff for processing is also at the higher side of 2150 per unit. However, in Punjab, the industrial consumers are being provided with a blend of RLNG and local gas at ratio of 75:25 per cent and in Sindh 40:60.

The domestic gas consumers have already experienced a two-time increase in gas prices – up to 193.3 per cent from November 1, 2023 and then up to 67 per cent from February 1, 2024. The government has increased the gas price massively in the current financial year 2023-24 to achieve revenue target of Rs902 billion, knowing the fact that the revenue requirement for current fiscal stands at Rs701 billion. While consumers are under pressure, the gas companies have submitted their new petitions for 2024-25 based on exaggerated assumptions.”

The officials said that the maximum increase from July 1, 2024 may hover between 10-15 per cent after rationalising the assumptions by OGRA, excluding the previous years’ shortfalls. They hoped that OGRA would not allow the gas companies to recover huge previous year shortfalls from consumers in one go as it did in the past. However, the regulator needs to stagger the impact of previous years’ shortfalls and likewise, the RLNG diversion cost to the domestic sector also needs to be reviewed. The top mandarins of the ministry want to limit the use of RLNG in the domestic sector as it causes a hike in the tariff.

In the ongoing fiscal, the RLNG cost of Rs232 billion is estimated to be incurred on RLNG diversion from November 2023 to March 2024. However, the cost of RLNG diversion of Rs250 billion to the domestic sector during the period FY19 to FY22 has not been recovered so far and it has become a part of the circular debt of Rs2.9 trillion.

Officials said out of Rs2.9 trillion circular debt, Rs1 trillion had been added just because of no increase in gas prices in the last 10 years. “OGRA used to give determinations but the governments avoided an increase in gas tariff. Because of this fact, Rs1 trillion has been added to the circular debt.”

Source: THE NEWS

 

[hassan918]

I wonder how long the Government will continue to rely on increasing electricity and gas prices to pay off the loans. They should find some other ways soon.

 

[Cricket Warrior]

Power consumers likely to get relief in May electricity bills

Power consumers are likely to get ‘third consecutive’ relief of Rs4.12 per unit in the electricity bills in May as a petition sought slashing rates from Rs2.94 to Rs4.92 in terms of fuel cost adjustment.

A petition has been submitted to the National Electric Power Regulatory Authority (Nepra) for slashing fuel cost adjustment from Rs2.94 to Rs4.92 per unit for May compared to April, said a statement issued by the Ministry of Power Division on Tuesday.

The consumers would get Rs4.12 per unit reduction in their electricity bills for the month of May compared to March.

The power tariff for April was also reduced from Rs4.92 to Rs7.6 per unit compared to March, the statement further said.

Owing to the efforts of the government, the request for reduction in electricity bills has been submitted to Nepra for the third consecutive month, it added.

Meanwhile, Federal Minister for Energy Awais Ahmad Khan Leghari said that benefits of reduction in fuel price would be provided to the masses.



The News

 

[Cricket Warrior]

Another power jolt in offing

A nation already reeling from sky-rocketing inflation, ever-rising fuel costs, economic instability and employment insecurity prepares for another jolt as the power companies seek Rs2.9402 per unit on account of fuel adjustment for the month of March 2024.

The Central Power Purchasing Agency (CPPA), on the request of power distribution companies (Discos), has submitted an application to National Electric Power Regulatory Authority (Nepra).

The application seeks increasing the electricity price by Rs2.9402 per kilowatt hour (kWh) under the Fuel Charges Adjustment (FCA) head for March.

Following the request, the power regulator has called a public hearing on April 26.

Another power jolt in offing | The Express Tribune

Discos seek Rs2.9402 per unit on account of fuel adjustment for March

tribune.com.pk

 

[Cricket Warrior]

CPPA seeks another electricity tariff hike

The Central Power Purchasing Agency (CPPA) has sought a Rs2.94/unit hike in electricity tariff in terms of monthly fuel charge adjustment (FCA) for March 2024, ARY News reported on Friday.

Electricity consumers are expected to bear another massive hike in tariffs in the coming days. The CPPA submitted a plea to the National Electric Power Regulatory Authority (NEPRA) to approve a Rs2.94/unit hike in electricity tariff for March FCA.

The NEPRA’s approval would increase the financial burden worth Rs22.80 billion on the power consumers.

According to the CPPA, over 7 billion units were sold to consumers in March 2024. The recent hike includes adjustments of over Rs7 billion.

Read more: IMF asks Pakistan to ‘immediately raise’ gas tariff

In February, the National Electric Power Regulatory Authority (NEPRA) notified a massive hike of Rs7.5 per unit in the price of electricity as part of the fuel price adjustment (FCA).

According to NEPRA notification, the power sector’s regulatory authority approved increase in the electricity tariff by Rs7.5 per kilowatt hour (kWh) under the head FCA of January 2024 and this hike in power tariff was charged to power consumers during the month of March 2024.

The hike in the power tariff caused Rs66 billion worth of additional burden on the already burdened power consumers.


ARY News

 

[hassan918]

K-Electric seeks nearly Rs19 per unit hike for seven months​

KARACHI: The K-Electric is planning to shock consumers as the sole power utility in Karachi has sought the National Electric Power Regulatory Authority’s (Nepra) permission to charge Rs18.86 per unit additional fuel cost adjustment (FCA) from its consumers for the past seven months.

According to details, the KE requested provisional monthly fuel charge adjustments for the period from July 2023 to March 2024.

In its application, the power distribution company sought Rs18.86 per unit increase in the FCA for the past seven months and suggested Re0.29 decrease for the rest of the two months period.

If the power regulator approves the KE’s plea, the total increase would be Rs18.57 per unit.

Nepra has set May 9 as date for hearing the KE’s plea.

Last month, Nepra allowed power distribution companies and the KE to collect an additional Rs2.7492 per unit from power consumers on account of periodic adjustments for three consecutive months starting from April 2024.

The regulatory authority has authorised power companies to collect over Rs85.3 billion from power consumers as an adjustment for the second quarter (Oct-Dec 2023).

This Rs2.7 per unit adjustment will apply to K-Electric as well. Notably, the stated Rs85.275 billion does not encompass the collection from the Karachi-based utility.

If incorporated, the total amount may escalate to over Rs90 billion. It’s essential to highlight that consumers were burdened with multiple taxes on these additional charges, adding to their financial strain.

Specifically, the 18% Goods and Services Tax (GST) on this amount will further impose an additional burden of over Rs16 billion on power consumers. In a nutshell, the consumers will pay over Rs106 billion (or $380 million) in these three months.

It is to be noted on February 14, 2024, Nepra held a public hearing on the petition of these companies who had demanded Rs85 billion upward adjustments for the quarter under review.

This amount is to be collected on account of variation in capacity charges, variable operation and maintenance (O&M), additional recovery on incremental sales, use of system charges (UoSC), Market Operator Fee (MoF) and FCA impact on transmission and distribution (T&D) losses for the quarter.

Source: GEO

 

[hassan918]

OGRA slashes LPG prices by Rs 11.88 per kg​

In a welcome move, the Oil and Gas Regulatory Authority (Ogra) has announced a massive reduction in the price of Liquefied Petroleum Gas (LPG) for May.

According to a notification issued by Ogra, the price of LPG per kilogram has been reduced by Rs 11.88, bringing the new price to Rs 238.46 per kilogram.

This decrease in LPG prices has resulted in a substantial reduction of Rs 140.18 in the cost of a domestic LPG cylinder, which now stands at Rs 2,813.85. This move is expected to bring relief to households and commercial users who rely on LPG for their cooking needs.

The decision comes as welcome news for consumers who rely on LPG for cooking and heating purposes. OGRA’s move to lower LPG prices is expected to ease the financial burden on households, particularly amid ongoing economic challenges.

Source: SAMAA

 

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LPG price ‘slashed’ by Rs20 per kg

According to sources, the LPG rates are reduced by Rs 20 taking the price from Rs 280 to Rs 260 per kilogram.

Its worth mentioning here that the LPG prices dropped earlier by Rs 20 per kilogram taking the total reduction to Rs 40 per kg in the span of few weeks.

On April 30, the Oil and Gas Regulatory Authority (OGRA) decreased the price of Liquefied petroleum gas for the month of May 2024.

As per the notification issued by the OGRA, the LPG rates were reduced by Rs 11.88 to Rs 238.46 per kilogram. The new prices will be in effect from Wednesday, 1st May 2024.

Earlier, the LPG was sold at Rs 250.34 per kg during April. The domestic LPG cylinder’s price has been reduced by Rs 140.18 and the new price is fixed at Rs 2813.85 for May 2024.

In April, the OGRA has announced a decrease in the prices of Liquefied petroleum gas. The LPG rates are reduced by Rs 6.44 per kg which took the per kg price from Rs 256.78 to Rs 250.34.

The domestic cylinder saw a Rs 76.9 decrease and the price is fixed at Rs 2954.03 for the month of April which was earlier Rs 3030.12.

LPG price 'slashed' by Rs20 per kg

QUETTA: The prices of liquefied petroleum gas (LPG) have been slashed by Rs 20 per kilogram in Quetta, ARY News reported citing market sources. According

arynews.tv

 

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It's almost summer here in Pakistan, and there's a gas load shedding. Now they are increasing the prices of these cylinders because demand is high

 

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Nepra approves Rs2.83 per unit hike in FCA for May power bills

The National Electric Power Regulatory Authority (Nepra) on Wednesday authorised ex-Wapda distribution companies (XWDiscos) to levy a Rs2.83 per unit charge in consumers’ electricity bills for May as part of fuel cost adjustment (FCA) charges.

Nepra said the FCA pertains to the month of March.

According to a notification issued by Nepra, a copy of which is available with Dawn.com, the new adjustment “shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers”.

The notification added that this adjustment would be shown in consumers’ bills based on units billed in March.


Dawn News