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Electricity and Gas prices to triple as subsidies for rich remain

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.
 
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
 
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

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

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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
 
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
 
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.


tribune.com.pk

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 tribune.com.pk
 
Cricket Warrior said:
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.


tribune.com.pk

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 tribune.com.pk
Click to expand...
Hike in industrial unit price means more inflation.
 
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
 
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
 
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.
 
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
 
PDM 2.0 continuing from where the left the government
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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
 
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
 
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.
 

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
 
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.
 
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
 
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.



tribune.com.pk

Another power jolt in offing | The Express Tribune

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

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
 

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
 
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.

arynews.tv

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 arynews.tv
 
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
 
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
 
NEPRA reserves decision on Rs19 tariff hike request

The National Electric Power Regulatory Authority (Nepra) on Thursday reserved its judgement on an increase of up to Rs19 per unit in electricity tariff on account of fuel cost adjustment (FCA) for a nine-month period.

K-Electric (KE) had filed an application with the regulator, seeking a tariff hike of up to Rs18.86 per unit for the period spanning nine months from July 2023 to March 2024.

The proposed FCA could have an average impact of Rs1.6 to Rs2 per month on consumers compared to the average FCA of Rs2.89 per unit applied to the consumers of other power distribution companies (DISCOs) during the same time frame.

However, Nepra will make a final decision on the tariff increase and duration of the provisional FCA. KE submitted a provisional FCA petition based on three scenarios, seeking the regulatory authority’s approval for any of them.

Nepra will establish guidelines to determine the unit cost and recovery period of the FCA and will subsequently issue a notification while identifying the chosen method and its implications for consumer bills. This provisional request stems from ongoing deliberations between KE and Nepra on utility tariffs while feedback from stakeholders has already been solicited on KE’s distribution and supply tariff.

During an interactive hearing, the customers, including those who were present and the ones participating online, posed questions about various aspects of the provisional FCA. Responding to queries about integrating more cost-effective generation sources, the KE chief executive officer outlined plans to incorporate 640 megawatts of affordable wind and solar energy by fast-tracking such projects for commissioning within the next two years.

Additionally, he told the audience that efforts were underway to introduce cheaper indigenous fuel sources to further reduce the overall cost. Regarding electricity supply to the matric examination centres in Karachi, a spokesperson for the private power utility, when contacted, said the areas where exemption was possible for the examination centres, shared by the education department, they had been exempted from load-shedding for the duration of exams.

When asked about the reduction in KE losses since its privatisation, as pointed out at the hearing by Karachi industrialist Arif Bilwani, the information provided by the company indicated a significant decrease in losses from nearly 40% at the time of sell-off to approximately 15% at present. Nepra intervened when accusations beyond the scope of the hearing were made by Jamaat-e-Islami representative Imran Shahid. The party official rejected outright the increase in tariff.

He alleged that KE totally depended on the independent power producers (IPPs) and National Transmission and Despatch Company (NTDC), adding that citizens of Karachi were suffering electricity outages for three to 18 hours. “People of Karachi should not be punished for the inefficiency of the power sector,” he remarked.

While floating suggestions, Rehan Jawed, an industrialist from Karachi, proposed that FCA collection should be spread over a period of nine months.

FCA is a routine procedure for power utilities, which reflects changes in the generation mix and global prices of fuel used for electricity production.

Final determination of the FCA is made and notified by Nepra, preventing individual power distribution companies from unilaterally determining or modifying the FCA. “K-Electric has won an injunction against the refund of money to the customers of Karachi,” said Tanveer Bari, a representative of the Karachi Chamber of Commerce and Industry.

“Unless the fuel price adjustment is approved, the citizens of Karachi should get relief,” Bari stressed. It was emphasised at the hearing that load-shedding should not be done on the basis of feeder losses in Karachi. Industrialists pointed out that there were 4,000 units in Karachi which were facing a higher cost of electricity due to the application of cross-subsidy.

They were of the view that the incentive of incremental revenue was not being passed on to consumers despite a scheme announced in this respect by the federal government. They sought intervention of the power-sector regulator.

Karachi industrialists cautioned that industrial units were being shut down due to high electricity rates and asked the regulator to pass on the tariff hike in phases over a period of nine months to ease burden on the industry.

SOURCE: EXPRESS TRIBUNE
 
Power tariff may go up by Rs7 in July

Pakistan has informed the International Monetary Fund (IMF) that the average electricity tariff on account of yearly adjustment might increase in the range of Rs5 to Rs7 per unit in July and that it is going to miss the circular debt reduction target despite multiple rounds of price hike.

During the ongoing interactions on “further engagements with the fund”, the IMF has not accepted the government’s proposal to reduce power tariff for industries by increasing the burden of up to 200 units monthly consumers through adding fixed charges in their bills.

The deliberations took place during a number of rounds to assess the performance of the power sector this week, according to the sources in the government.

The sources said that the energy ministry officials informed the IMF that based on the petitions by the power distribution companies, electricity tariffs on account of annual base tariff adjustment might go up by Rs5 to Rs7 per unit. This may translate into about 20% increase on the basis of the existing base tariff.

The sources said that the IMF asked the ministry to share more details about the assumptions used to work out the annual base tariff increase. They said that it appeared that the IMF was skeptical about the quantum of increase, which might be less than what the Power Division was expecting.

The annual base prices are being increased every year to make the power sector financially viable. The monthly, quarterly and debt servicing surcharges are over and above the annual base tariff hike. The current effective per unit electricity price for domestic consumers is Rs62, which is double than the existing base tariff due to various kinds of increases and taxes built over and above the base tariff.

The sources said the Rs5 to Rs7 per unit expected hike was on the basis of annual budget subsidies of over Rs1.2 trillion for the next fiscal year 2024-25. In case the quantum of the subsidy changes, it will also have an impact on the expected increase in the electricity prices.

The sources said that the Ministry of Finance has indicated a maximum Rs920 billion in power subsidies for the next fiscal year but the final decision has not yet been taken. The Ministry of Energy official did not respond to a request for comment.

For the past two years, the electricity prices had been increased on an average by Rs7 per unit and yet it failed to curtail the circular debt.

For the current fiscal year, the government and the IMF had agreed to keep the circular debt at Rs2.310 trillion. However, the sources said that the Ministry of Energy informed the IMF that the circular debt may exceed the target by Rs80 billion to Rs100 billion in this fiscal year.

This puts a serious question mark on the efficiency and the management of the power sector despite a campaign against electricity theft.

The sources said that the energy ministry again pitched a proposal that the electricity prices for up to 200 units protected category consumers should be increased by imposing a fixed monthly surcharge in the bill.

However, they said that the IMF was not receptive to the recommendation on the ground that it cannot burden the domestic consumers in order to lessen the burden of the industrial consumers.

For this fiscal year, the direct tariff differential related electricity subsidies were estimated at Rs632 billion but only Rs158 billion are being paid from the budget. The remaining Rs474 billion are being borne by residential consumers with higher consumption as well as the commercial and the industrial consumers.

In February this year, the IMF had also rejected the proposal of shifting the power cost burden from one shoulder to the other. “The proposed industrial tariff reduction plan does not address the underlying problems and in particular, the circular debt neutrality of the tariff rationalization plan is doubtful,” IMF’s Mission Chief to Pakistan Nathan Porter said in February this year.

The mission chief further added that the industrial tariff reduction plan “would place a significant additional burden on vulnerable households”.

The government wants to reduce the cross-subsidy burden of the industry and in return it seeks to increase the subsidy burden of the residential consumers.

The government’s plan was also throwing an additional burden of Rs50 to Rs3,000 per month fixed charges in the electricity bills of all residential consumers. Only for the protected category consumers the proposal was to slap Rs50 to Rs450 per connection monthly surcharge.

The IMF has the opinion that restoring the viability of the energy sector is critical to Pakistan's economic recovery and fiscal sustainability. However, it is essential for the government to focus on broad-based reforms, including reducing the high cost of energy, improving compliance and reducing theft and line losses.

According to the earlier proposal, the consumers of up to 400 units of equal monthly consumption are receiving Rs592 billion subsidies at Rs13.65 per unit rate. Out of this Rs592 billion, the lifeline and protected consumers get Rs375 billion subsidies. The industrial consumer is paying Rs8.61 per unit subsidy and the residential consumer using more than 400 units is paying Rs5.88 per unit.

However, the government’s plan was about relieving industrialists from their Rs8.61 per unit burden but adding into the burden of Rs5.88 per unit of the residential consumers.

SOURCE: EXPRESS TRIBUNE
 
SSGC announces ‘gas holiday’ for all industries in Sindh

The Sui Southern Gas Company (SSGC) has announced a 24-hour “gas holiday” for all industries, including power generation units, as well as all CNG stations in Sindh.

This gas holiday will be in effect from 8am on May 19 (Sunday) to 8am on May 20 (Monday).

The SSGC cited gas supply shortages within their system, leading to a depletion of line pack and low pressures, as the reason for this gas holiday.

The company has warned that it will take strict action against any industry found violating the gas holiday period. Specifically, SSGC has stated that the gas supplies of any violating industries will be disconnected for at least 7 days.


AAJ TV
 
KE allowed to add more power through renewables

The power regulator has approved a seven-year plan for K-Electric, under which the company will increase its generation capacity by about 3,200MW, mostly through renewable energy.

Under the seven-year Power Acquisition Plan (PAP 2024-30) approved by the National Electric Power Regulatory Authority (Nepra), K-Electric will get more electricity from the national grid, envisaging an estimated 9pc tariff reduction to 7.9 cents from the current rate of 8.7 cents.

The plan has been modelled on the assumption that power availability from the national grid will reach 2,050MW, up from about 1,100MW at present.

The increase in power generation is expected to be achieved through the commissioning of Karachi Nuclear to KE interconnection (KKI) along with 1,200MW from renewables, 82MW from hydro, and 990MW from thermal. “Based on these data and assumptions,” Nepra said the KE’s will come down from 8.7 cents/kWh in 2024 to 7.9 cents/kWh in 2030.

The Nepra made it clear that proposed tariff numbers in the PAP by KE were subject to regulatory proceedings and approvals, and tariffs shall be determined either through competitive auctions, negotiated or cost-plus mode, followed by the submission of bidding documents or tariff petitions.

“Therefore, the proposed PAP is approved to the extent of quantity of acquisition (MW) and procurement mode for firmed up projects”.

The regulator has extended the power purchase agreements of Tapal and Gul Ahmed with a condition that the tariff determined and approved by Nepra shall be applicable for these projects.

It did not extend the retirement dates of Bin Qasim Power Station’s Unit I and 2, saying taht any extension of BQPS- 1, if required, shall be justified in the upcoming PAP or through a separate request by K-Electric.

Moonis Alvi, the K-Electric CEO, welcomed the regulatory approval for PAP, saying the plan focused on the integration of renewable energy.

“KE aims to add 1,282MW of renewable energy, including solar and wind projects, by 2030. This includes a notable 270MW solar PV project in Karachi and a 200MW hybrid plant near the Dhabeji Grid Station.”

“These projects are expected to significantly contribute to the city’s energy mix, promoting sustainability and reducing the carbon footprint,” he said.

According to Nepra’s determination, KE would be wheeling electricity from the 82MW Turtonas-Uzghor Hydropower Project (TUHPP) near Chitral in Khyber Pakhtunkhwa for which the regulator has already approved the feasibility stage tariff of 7.9 cents per unit for 30 years at exchange rate of Rs123 per dollar.

Mr Alvi said the PAP provided a clear roadmap for the next five years and integrating clean energy “was vital to driving a sustainable energy ecosystem, balancing affordability with reliability as the company was receiving global interest in its 640MW renewable energy projects”.

The Nepra noted that KE’s 2024-30 PAP identified the power utility’s long-term electricity needs through the addition of new power generation and supply sources with a focus on reduction of its tariff price.

SOURCE: DAWN
 
Electricity consumers may need to brace for another jolt as power distribution companies have proposed a tariff increase of up to Rs3.48 per unit.

The companies have requested permission from the National Electric Power Regulatory Authority (NEPRA) to collect an additional Rs3.488 per unit from consumers under the fuel charges adjustment (FCA) for April 2024.

The Central Power Purchasing Agency (CPPA) filed the petition on behalf of XWDiscos, and NEPRA has scheduled a public hearing on May 30, 2024, to address the matter.

According to data submitted to NEPRA, the CPPA reported that 8,639 GWh of electricity was generated in April 2024, at a cost of Rs 79.55 billion, or Rs9.208 per unit.

Out of this, 8,375 GWh, costing Rs75.205 billion, was delivered to distribution companies, with transmission losses recorded at 2.73 per cent.

However, the petitioner has also decided to make a backward adjustment of Rs3.06 billion (repay to the consumer), after that, the total amount goes down to Rs75.2 billion (or 8.98 per unit).

Power generation figures reveal a 2.2 percent increase to 881 gigawatt-hours (GWh) from local coal while the generation from imported coal was 21 GWh compared to zero generation in previous month.

Source: The Express Tribune
 
Power shortfall reaches over 5,800MW as country sizzles

As the country sweltered under intense heat on Wednesday with mercury already touching the dreaded 45-degree mark in many parts of the country, particularly in Sindh, the power shortfall in the country has reached 5,845 megawatts (MW), resulting in long power outages in rural areas and areas with high line losses.

The country's electricity demand is 24,500 MW. However, its electricity production currently stands at 18,655 MW, said official sources.

Hydropower plants are generating 5,000 MW of electricity, while thermal power plants operated by the government are producing 975 MW.

Private sector power plants are producing 8,350 MW; wind power plants are generating 790 MW; solar power plants are generating 200 MW; bagasse plants 140 MW; and nuclear power plants 3,200 MW.



tribune.com.pk

Power shortfall reaches over 5,800MW as country sizzles | The Express Tribune

The country's electricity demand is 24,500MW, but its production currently stands at 18,655MW, according to sources
tribune.com.pk tribune.com.pk
 
OGRA raises price of RLNG

The Oil and Gas Regulatory Authority (OGRA) has announced an increase in the prices of Regasified Liquefied Natural Gas (RLNG) for the month of May.

According to a notification issued by OGRA, the price of LNG for Sui Northern has been set at $12.72 per MMBtu.

The notification further states that the new price of LNG for Sui Southern has been fixed at $12.06 per MMBtu.

It is important to note that the price of LNG for Sui Northern in April was $11.98 per MMBtu, while the price for Sui Southern in April was $11.33 per MMBtu.


AAJ News
 
Good news for power consumers using under 100 units per month

Minister – Nasir Hussain Shah – has announced good news for power consumers using up to 100 units of electricity in Karachi, ARY News reported on Thursday.

Addressing to media, the Energy Minister, Naisr Hussain Shah revealed that a plan has been devised to provide free electricity to customers using up to 100 units, with solar parks and mini-grid stations facilitating this initiative.

Shah highlighted that the Sindh government has allocated funds for solar energy and mini-grid projects in the budget, with Rs 5 billion dedicated to solar initiatives.

The Energy Minister stated that solar panels will be offered at a significantly reduced price, benefiting the poor and middle-class residents of metropolis.

He mentioned that 200,000 solar panels will be distributed, with the government covering 80 percent of the cost and consumers paying the remaining 20 percent.

Additionally, Shah mentioned that solar parks and mini-grid stations will be established across Sindh, including Karachi.


ARY News
 

Govt increases power tariff by Rs3.25 per unit​

ISLAMABAD (Dunya News) - The federal government on Saturday increased electricity tariffs by Rs 3.25 per unit resulting in an additional burden of Rs 46 billion on consumers.

According to the sources in Nepra, the price of electricity was raised by Rs 3.25 per unit. It is said that this increase is part of a quarterly adjustment and will apply to June, July, and August.

Sources further revealed that Nepra forwarded the decision to increase electricity prices to the federal government for final approval.

This increase will result in an additional burden of Rs 46 billion on consumers.

It is worth noting that NEPRA had reserved its decision on May 30 regarding the request to increase the price of electricity. The Central Power Purchasing Agency (CPPA) had requested this increase based on the April fuel adjustment.

Source: Dunya News
 
These even increasing electricity prices is probably the biggest headache for a common men of Pakistan.
 
Electricity prices further jacked up by Rs3.76 per unit

The National Electric Power Regulatory Authority (Nepra) on Tuesday hiked the per unit price of electricity by Rs3.76 per unit on account of quarterly fuel adjustment.

According to a notification issued by the power regulator, the increase will be applicable for three months this year — June, July and August.

As a result of the latest hike in electricity prices, consumers will face higher electricity bills, with additional rates of Rs 1.90 per unit in June, Rs 0.93 per unit in July and August.

Furthermore, this tariff hike will add an additional burden of Rs 46.61 billion on electricity consumers and will also be applicable to K-electric consumers.

Earlier, sources revealed that Pakistan government is expected to unveil a new relief package aimed at small consumers who use up to 200 units of electricity monthly, ARY News reported

Sources said that PM Shehbaz Sharif directed that there should be no increase in power tariffs for those consuming 200-unit monthly consumers.

Sources from the Prime Minister’s Office indicated that Shehbaz Sharif rejected the economic team’s proposal to increase electricity rates for protected consumers.


ARY News
 

NEPRA announces Rs10.1 per unit electricity price hike for Karachi​

The National Electric Power Regulatory Authority (NEPRA) has issued a notification announcing an increase in electricity rates for Karachi by Rs10.1 per unit. The hike is attributed to the monthly fuel adjustment mechanism.

The notification details the incremental charges over the upcoming months. Consumers will see an additional charge of Rs2.68 per unit in June, Rs3.11 per unit in July, Rs3.22 per unit in August, and an extra Re1 per unit in September.

However, this increase will not apply to lifeline consumers of K-Electric (KE) or vehicle charging stations.

Also Read: Nepra announces electricity price increase for June-August

KE had initially requested this fuel adjustment increase to cover the period from July 2023 to March 2024. The additional charges are expected to impose a burden of over Rs20 billion on consumers.

NEPRA's decision came after a hearing on KE's request for a nine-month extension of the monthly fuel adjustment charges. Consequently, KE customers will be subject to the increased rates from June to September.

This development highlights the ongoing challenges faced by Karachi's electricity consumers amid fluctuating fuel costs and the broader economic impacts of energy price adjustments.

Also Read: Nepra drops another power bomb on electricity consumers

Earlier, NEPRA had announced an increase in electricity prices by Rs3.33 per unit for non-Karachi consumers, placing an additional burden of over Rs35 billion on consumers. This adjustment came as part of April's monthly fuel adjustment, according to a notification issued by the authority.

The Central Power Purchasing Agency (CPPA) had initially requested a price hike of Rs3.49 per unit, but NEPRA has settled on a slightly lower increase. The new rates would be reflected in this month's electricity bills.

On June 4 also, Nepra had issued a notification announcing an increase in electricity prices as part of the quarterly adjustment for the current financial year. The price hike was set to impact consumers over the next three months.

According to the notification, electricity prices rose by Rs1.90 per unit for the month of June. For the months of July and August, there was to be an increase of 93 paisas per unit. This adjustment means that consumers will experience higher electricity bills during the period of June to August 2024.

Source: SAMAA
 
Demand more western style democracy for a so called Islamic Republic. Kiss IK, the Sharif and Zardari's feet even more thinking these losers will eventually bring change by blaming each other for the mess we find ourselves in. Most Pak people who worship these people deserve exactly what they are getting.
 

PM announces major electricity tariff cut for industrial sector​


Prime Minister Shehbaz Sharif announced a significant reduction in electricity tariffs for the industrial sector on Friday, cutting rates by Rs10.69 per unit. This move aims to boost exports and industrial production.

Due to the prime minister's special efforts, the new electricity price per unit for the industrial and export sector is set at Rs34.99.

According to a statement from the PM Office, the National Electric Power Regulatory Authority (NEPRA) recommended this reduction for industries.

The PM’s package is expected to provide over Rs200 billion in relief to industries, enhancing their competitiveness in the global market.

The package aims to align the country’s manufacturing costs with international markets, reducing production costs for industrial and agricultural commodities. This is anticipated to lead to an increase in exports.

The tariff cut is also expected to accelerate industrial growth, create new job opportunities, and stimulate economic activity.

It may be mentioned that NEPRA had proposed a reduction of Rs10.69 per unit in electricity prices for industries.

Prime Minister Shehbaz's special package is set to alleviate over Rs200 billion worth of burden from industries.

Sources indicate that this relief aims to make the cost of goods competitive in the global market. It is also expected to reduce the production costs of industrial and agricultural products, leading to a significant increase in exports.

Experts believe that the prime minister's announcement will accelerate industrial development and rapidly increase employment. The faster pace of industrial activity and the rise in exports will benefit the national economy.

tribune.com.pk

PM announces major electricity tariff cut for industrial sector | The Express Tribune

After Rs10.69 cut, new electricity price per unit for the industrial and export sector is set at Rs34.99
tribune.com.pk tribune.com.pk
 
NEPRA approves whopping Rs 5.72 increase in power tariff

The National Electric Power Regulatory Authority (NEPRA) has approved a significant hike in the basic electricity tariff, raising it by Rs 5.72 per unit for the fiscal year 2024-25.

This decision has been forwarded to the federal government for final approval.

Starting from July 1, 2024, the average basic electricity tariff will rise from Rs 29.78 to Rs 35.50 per unit. The federal cabinet will make the final decision on the implementation of this tariff increase.

In a contrasting move, Prime Minister Shehbaz Sharif has reduced the price of electricity for industries and exports by Rs 10.69 per unit. The new price of electricity for this sector will be Rs 34.99 per unit. This move is expected to provide a significant boost to industrial development, leading to faster employment opportunities and economic growth. The government estimates that this move will remove a burden of over Rs 200 billion from industries.

The approval from NEPRA reflects ongoing adjustments in the energy sector, balancing between necessary price hikes and efforts to support economic growth through industrial incentives.


Samaa TV
 

Electricity bills to rise further as plea filed for hike in tariff​

The Central Power Purchasing Agency (CPPA) has submitted a plea to the National Electric Power Regulatory Authority (NEPRA) seeking an increase of Rs 3.41 per unit in electricity prices.

The proposed hike is part of the monthly fuel cost adjustment for the month of May, according to the application filed by the CPPA. The regulatory body is set to hold a hearing on the application on June 28.

In its submission, the CPPA outlined that a total of 12.26 billion units of electricity were generated in May. The cost of electricity production for the period was reported to be Rs 9.12 per unit.

The CPPA has attributed the need for the price increase to the rising costs associated with fuel.

Source: SAMAA
 

Traders announce nationwide protest against electricity bills on July 1​


The All Pakistan Traders Association has announced a nationwide protest against the increase in electricity bills, set for July 1, and warned the federal government to abolish additional taxes by June 30 or face further actions.

Ajmal Baloch, President of the All Pakistan Traders Association, alongside other traders, made this announcement during a joint press conference in Islamabad on Friday. He stated, "The government has committed an injustice regarding electricity bills, and we are declaring a nationwide protest starting from July 1."

Baloch highlighted the discrepancy in billing, saying, "A bill for 200 units is different from that of higher usage. The Independent Power Producers (IPPs), owned by government elites, are being paid in dollars."

He noted that while payments to IPPs are being made for 48,000 megawatts, the actual requirement is around 20,000 megawatts.

Appealing to traders and the public, Baloch urged, "On July 1, traders across the country should protest, and the public should join us. There will be protests on every level and every street."

He warned the government to abolish the taxes, fixed taxes, and slabs included in the electricity bills by June 30 (Sunday) or else the traders would announce their next course of action on July 1. "The IPP contracts, which burden the budget by Rs2,500 billion, should be reviewed," he added.

Baloch also pointed out the burden of free electricity provided to WAPDA employees being placed on the public.

Vice President of the Central Traders Association Rawalpindi, Tariq Jadoon, and President Rawalpindi Cantonment, Sheikh Hafeez, claimed that WAPDA has installed faster meters, which according to NEPRA's report, are 30% faster.

Khalid Chaudhry, Secretary of the Traders Action Committee Islamabad and Advisor to the President ICCI, called on the government to take notice of these faster meters, as NEPRA’s website reports that distribution companies are exploiting the public by installing these meters.

tribune.com.pk

Traders announce nationwide protest against electricity bills on July 1 | The Express Tribune

APTA warns federal govt to abolish additional taxes by June 30 or face further actions
tribune.com.pk tribune.com.pk
 
ECC approves hike in gas prices

The meeting was presided over by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division, said a press release issued here.

The meeting was attended by the Minister for Petroleum Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister of State for Finance & Revenue Ali Pervez Malik, representatives from Oil and Gas Regulatory Authority, Federal Secretaries, and other senior officers of the relevant ministries.

The ECC meeting approved hike in gas prices for captive power plants (CPPs) by Rs250 to Rs3,000 per mmBtu on the recommendation of the Petroleum Division. The existing gas price for CPPs stands at Rs2,750 per mmBtu.

In recent IMF talks, adjusting gas prices by July 1, 2024, and phasing out captive power plants by January 2025 were set as major conditions.

The captive power industry, substantial consumers of gas and RLNG, provides extra revenues for cross-subsidization in the domestic sector.

arynews.tv

ECC approves hike in gas prices

ISLAMABAD: The Economic Coordination Committee (ECC) has approved the Petroleum Division’s recommendation not to reduce the gas prices, ARY News reported.
arynews.tv arynews.tv
 
I learned that we Pakistanis are paying the same price for Electricity as some states in US.
 
LPG prices tick up after hike in petrol rates

The Oil and Gas Regulatory Authority (Ogra) increased on Monday the Liquefied Petroleum Gas (LPG) prices increased, following the hike in petroleum products.

In a notification, Ogra increased the per kilogram price of LPG by 13 paise for the month of July. The new ex-depot price of LPG has been fixed at Rs234.72 per kg.

For domestic consumers, the price of an LPG cylinder has been set at Rs2,769.66 for July. In comparison, the LPG cylinder price was Rs2,768.00 in June.

The latest hike in LPG prices comes after the government increased the prices of various petroleum products on Sunday.


AAJ News
 
Electric shock for millions as tariffs soar

In yet another shock to the tax-bitten masses, the government on Wednesday approved up to 51% or Rs7.12 increase in the per-unit price of electricity from July, the highest raise in terms of percentage for the lower income groups.

In one go, 32.5 million consumers, mainly households, will be forced to pay an additional amount of at least Rs580 billion in this fiscal year. The rate is over and above the existing cost of electricity, which the consumers will pay, mainly due to mismanagement and wrong energy policies of past three decades.

Among these 32.5 million electricity consumers, 26 million households fall in the category of the poorest to low-middle income groups – the segments that have seen the maximum increase in prices in terms of percentage.

For the first time, the government has also slapped the residential electricity consumers with fixed monthly charges ranging from Rs200 to Rs1,000 per unit. The power tariff increase was one of the key prior actions the International Monetary Fund (IMF) has set for Pakistan to qualify for the staff-level agreement for the next bailout package.

The federal cabinet approved the summary for the increase in the electricity prices through circulation, a top government official confirmed to The Express Tribune. He said that a notification for the increase in the price would be issued shortly.

Unlike the past, when the summary would first go to the Economic Coordination Committee (ECC) of the Cabinet, this time the energy ministry quietly moved the summary to the federal cabinet and sought its approval through circulation.

The circulation is a method that is different from an open discussion during a regular cabinet meeting. About 32.6 million consumers have been hit without debating the issue in the federal cabinet.

The Power Division had earlier moved a similar summary on June 14 but due to objections raised by the IMF on the new industrial package, it had to withdraw the summary. Also, the IMF did not accept the prime minister’s Rs200 billion package under which the industrial electricity price had been announced at Rs34.99 per unit. Now, the new electricity prices for the industry are Rs37.83 per unit.

The government increased the electricity prices in the range of Rs3.95 to Rs7.12 per unit for the residential consumers. In terms of percentage, the increase ranges from 14.3% to 51% – the maximum increase for Pakistan’s poorest users, having 1 to 100 units monthly consumption.

The average increase in the electricity prices is Rs4.55 per unit and as a result, the national average uniform rate has jumped from Rs28.44 per unit to Rs33 per unit, according to the Power Division.

However, the minimum rate will now be Rs11.69 per unit and the maximum will be Rs48.84 per unit, excluding taxes, quarterly and monthly adjustments.

The government of Prime Minister Shehbaz Sharif approved the increase in the electricity prices for 1 to 100 units protected consumers from Rs7.74 per unit to Rs11.69 –an increase of Rs3.95 or 51%. This is the poorest class that had been hit the hardest.

But the Power Division official said that the protected consumers did not see any increase during the past three years. The traders have already started protesting against the massive increase in their monthly bills. The people were given another shock after heavy taxation of a record Rs1.7 trillion.

On the consumption of up to 200 units, the new price for the so-called protected consumers is Rs14.16 per unit –an increase of 41%. If a consumer does not fall in the category of protected and he has monthly consumption of up to just 100 units, he will have to pay Rs23.59 per unit, excluding taxes, which translates into an increase of Rs7.12 per unit or 43.2%.

For up to 200 unprotected consumers, the new rate is Rs30.1 per unit – a surge of Rs7.12 or 31% for the category of poor people. Likewise, for up to 300 units consumption, the new rate is Rs34.26 per unit – an increase of Rs7.12 or 26.2%. For up to 400 units, the new rate is Rs39.15 per unit with the increase of 22.2% or Rs7.12 per unit.

For up to 500 units, the new rate is Rs41.36 per unit and the increase is Rs6.12 per unit or 17.3%. For up to 600 units, the new rate is Rs42.78 per unit and the increase is Rs6.12 per unit. For up to 700 units, the new rate is Rs43.92 per unit and the increase is Rs6.12. For the highest category, the new rate is Rs48.84 per unit.

For the commercial users, the new rate is in the range of Rs38.59 to Rs45 per unit, showing an increase of up to Rs5.84 per unit or 15%. Also, the government has now revised the fixed charges for the industrial consumers.

The National Electric Power Regulatory Authority (Nepra) had proposed the fixed charges from Rs200 to Rs500 per kilowatt per hour to Rs500-2,000. But the federal government approved the fixed charges in the range of Rs400 to Rs1,250 per kilowatt per hour per month.

Also, as against the earlier decision of applying fixed charges at half of the sanctioned load, the cabinet approved that the application of fixed charges would be at 25% of sanctioned load.

The government approved the new industrial tariff at Rs37.83 per unit, which is same as the last year but Rs2.84 per unit higher than what the prime minister had announced. The prime minister’s words were shot down by the IMF’s Mission Chief Nathan Porter.

EXPRESS TRIBUNE
 
Electricity bills to skyrocket as new tariff slabs applied from July 1

The Power Division has dropped a new electricity bomb and unveiled revised electricity tariff slabs following an increase of Rs5.72 in the basic electricity tariff. The federal government has submitted the tariff adjustment request to the National Electric Power Regulatory Authority (Nepra), pending a public hearing scheduled for 2pm on July 8.

Nepra has received the federal government's request to increase the electricity price by Rs5.72.

According to the new tariff structure released by the Power Division, the revised rates have come into effect from July 1, 2024 regardless of when Nepra issues the official notification. The new electricity tariff will have a little impact on most people's monthly bills. It further said that the new rate will be applicable to all units for electricity consumption above even one unit from each slab, the notification stated.


www.samaa.tv

Calculate electricity bills after new tariff slabs from July 1

Pakistan's Power Division has implemented revised electricity tariff slabs following a Rs5.72 increase in basic rates, effective from July 1, 2024. Discover how these changes affect household, commercial, and industrial consumers, along with government subsidies and future rate forecasts.
www.samaa.tv www.samaa.tv
 
Ex-FBR chairman urges govt to reconsider power tariff hike

The former chairman of the Federal Bureau of Revenue (FBR) on Friday urged the government to reconsider its decision to raise electricity prices based on IMF instructions, ARY News reported.

Shabbar Zaidi criticized the government for not taking austerity measures and instead imposing an ‘unfair’ tax on citizens.

Speaking in the ARY News program, Sawal Yeh Hai, the ex-FBR chairman – Shabbar Zaidi – highlighted that the federal government solely committed to collecting Rs 13,000 billion to pay back IMF loan while the ordinary citizens are struggling to make ends meet.

He asserted that the government cannot take austerity measures as they have to deposit Rs 9,700 billion in interest and it no longer has the ability to talk about debt.

“The government deposits all the collected revenue in interest, as Pakistan has to pay Rs 9,700 billion in interest on the loan next year,” stated Zaidi.

Responding to a question, Shabbar Zaidi criticized the Chief Minister of Punjab Maryam Nawaz’s performance stating that the 2.5 million children are deprived of basic education in Pakistan.

Zaidi highlighted that the government should have established schools for these children before addressing their nutritional needs.

He further added that the condition of poor citizens has worsened due to the increase in the prices of essential commodities.

He noted that individuals earning a salary of Rs 50,000 are now forced to sell their household goods just to afford electricity.

The former minister urged the government to reconsider its decision to raise electricity prices based on IMF instructions, questioning whether they will subsidize electricity or continue to let the poor suffer.


ARY News
 
Government considers dropping power tariff hike for protected consumers

The federal government has proposed to withdraw the recent electricity price hike for consumers using up to 200 units per month, according to sources.

Prime Minister Shehbaz Sharif has directed the federal cabinet to urgently approve the summary of this proposal, aimed at providing relief to consumers using up to 200 units per month from July to September 2024.

The federal government will provide a subsidy of approximately Rs50 billion to give relief on the tariffs.

Previously, the federal cabinet had approved an increase of up to 7.12 rupees per unit in the base electricity tariff, which was set to take effect from July 1, 2024.

PM Shehbaz has called for a federal cabinet meeting to be held tomorrow.

The meeting will focus on approving the relief measures for electricity consumers and reviewing the overall economic situation.

Moreover, the proposal aims to alleviate the financial burden on low and middle-income households, ensuring that essential electricity services remain affordable for all segments of the population.

EXPRESS TRIBUNE
 
Nepra urges govt to correct power generation contracts

The National Electric Power Regulatory Authority (Nepra) on Wednesday called on the government to seriously work on corrections in power generation contracts to provide substantial relief amid widespread public outcry over a tariff increase of up to Rs7.12 per unit.

During a public hearing, Nepra also announced it had taken notice of last month’s overbilling by distribution companies due to changes in the meter reading mechanism to ‘pro rata’ adjustment and had ordered a detailed investigation.

Representatives from the power division and its subordinate companies claimed that the average tariff for the current fiscal year would be lower than the previous year’s due to fewer quarterly tariff adjustments and monthly fuel cost changes.

They said the government had finally provided a Rs50bn subsidy for three months to provide relief to residential consumers using up to 200 units per month. However, a senior Planning Commission official told the hearing that the cabinet’s decision about this relief had yet to be officially notified.

The public hearing, presided over by Nepra Chairman Waseem Mukhar on government’s request for rebasing national average tariff envisaging up to 51 per cent hike, attracted strong criticism from almost all consumer categories from across the country, including Karachi. Even the export sector, for which the government claimed to have reduced tariff worth Rs155bn during this fiscal year, claimed that their effective tariff at Rs42 per unit still worked out at 15 cents per unit compared to 8-9 cents in the region, making the sector uncompetitive.

Both online and physically present consumers criticised Nepra for allegedly acting as a rubber stamp for government tariff hikes, with little effort to address inefficiencies in the power sector.

Some participants also highlighted contradictory policy stance by the Punjab and federal governments, with the provincial government providing subsidised solar panels adding to surplus capacity and the Centre imposing fixed capacity charge on consumers.

Elephant in the room

Nepra’s tariff member, Mathar Niaz Rana, highlighted that he had been pointing out that “the elephant in the room is generation and needed to be looked into”. He said the government should examine whether the independent power producers (IPPs) and generation plants are operating efficiently without violating their contracts.

Similarly, the working capital requirements for 15-day operations could be examined in addition to insurance costs and so on. There is a lot of potential to work on operational efficiencies, and it should be looked into. Nepra Chairman Mukhtar said the regulator had a lot of concerns over inefficiencies and the distribution companies were way behind efficiency and regulatory standards, barring a couple of Discos that were meeting or were close to those standards.

He said the power companies had failed to improve recoveries beyond 92pc over the years, which should be 100pc. “Drastic steps are needed. Business as usual will not deliver. At least bring some sense of reward and accountability in the system to restore public confidence,” he asked the government team, led by Joint Secretary of Power Division, Mahfooz Bhatti.

Mr Bhatti said the government had already started working in that direction, and the prime minister was himself monitoring power sector reforms. He said the key performance indicators were now being introduced for Discos, support units were being created, and boards were being transformed with sector experts, while some areas also needed investments.

Overbilling probe

Nepra’s member for consumer affairs, Rafique A. Shaikh, said the power regulator had constituted an investigation team on recent complaints of overbilling through pro rata application of units that moved many consumers out of the protected category or breached a specific slab.

The team has already visited the Power Information Technology Company that maintained the power sector data on meter reading and billing, etc. and was able to access 60pc of the data, which is currently in the process of sensitivity analysis.

He noted that similar complaints last year led to an investigation and adjustments for overbilled consumers. He also stated that while Nepra could impose fines on power companies, some decisions faced challenges in higher judicial forums.

The Nepra chairman disagreed with the general perception that the regulator was acting like a rubber stamp. He said the government had demanded a Rs8.33 per unit increase in the average national tariff, but the regulator brought it down to Rs5.90 per unit, which was further reduced to Rs5.72 on the day of final determinations with the applicability of the last interest rates. He said the final tariff revision decision would be issued in a day or two.

DAWN
 
The National Electric Power Regulatory Authority (NEPRA) has approved the government’s request to increase the basic electricity tariff by up to Rs 7.12 per unit, ARY News reported on Thursday

This tariff hike will apply uniformly across the country, including Karachi, while the Households and consumers with up to 200 units monthly are exempted from the hike for three months.

As per the notification, the domestic consumers will see a new tariff structure with the consumers between 201 and 300 units per month, the tariff will increase by Rs 7.12 to Rs 34.26 per unit.

Those consuming units between 301 and 400 will experience an Rs 7.02 increase, bringing rate to Rs 39.15 per unit.

Consumers using between 401 and 500 units will see their rates go up by Rs 6.12 to Rs 41.36 per unit.

The tariff for those consuming between 501 and 600 units will rise by Rs 6.12 to Rs 42.78 per unit, and for those using between 601 and 700 units, the rate will increase by Rs 6.12 to Rs 43.92 per unit.

Additionally, the consumers exceeding 700 units per month, the tariff will increase by Rs 6.12 to Rs 48.84 per unit.

Meanwhile, the lifeline consumers, who use up to 50 units per month, will continue to pay Rs 3.95 per unit. Those consuming between 51 and 100 units will maintain a rate of Rs 7.74 per unit.

NEPRA has sent the notification for this tariff increase to the federal government, which is expected to issue an official notification soon. The tariff hike will apply uniformly across the country, ensuring a standardized rate for all regions, including Karachi.

Source: Ary News
 
Electricity tariff raised by Rs3.33 per unit

The National Electric Power Regulatory Authority (Nepra) on Friday notified an additional fuel cost adjustment (FCA) of Rs3.33 per unit for electricity consumed in May, ARY News reported.

According to an order issued by the regulator, Nepra “reviewed and assessed a National Average Uniform increase of Rs3.3287/kWh in the applicable tariff for XWDISCOs on account of variations in the fuel charges for the month of May 2024”.

The “adjustment of Rs3.3287/kWh shall be applicable to all consumer categories except electric vehicle charging stations (EVCs) and lifeline consumers. The said adjustment shall be shown separately in the consumers’ bills” based on units billed in May 2024, and it will reflect in the billing month of July 2024, Nepra’s notification stated.

Meanwhile, the regulatory authority also notified a tariff reduction of Rs1.67 per unit for K-Electric consumers on account of fuel cost adjustment (FCA) for April 2024.

“The authority after discussing and incorporating adjustments decided to allow the negative FCA for the month of April 2024, to be passed on to consumers in their monthly bills of July 2024”, a separate notification stated.

The “negative adjustment shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units, EV Charging Stations and Agriculture Consumers of K-Electric”.

It added that negative monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

“The adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of April 2024”, it concluded.


ARY News
 

Corrupt contracts lead to high electricity costs, claims Gohar Ejaz​


Former caretaker commerce minister Gohar Ejaz has disclosed data on payments to Independent Power Producers (IPPs), revealing significant financial burdens on consumers.

Ejaz shared on Sunday that over the past year, IPPs received payments amounting to Rs1.95 trillion. He criticised corrupt contracts and mismanagement that result in electricity being sold at Rs60 per unit, calling for public action against these deals.

He highlighted that the government purchased electricity from one power plant at a record Rs750 per unit, and from coal power plants at an average of Rs200 per unit, while wind and solar plants sold electricity at over Rs50 per unit.

Ejaz pointed out that despite operating below 20% capacity, IPPs were paid substantial sums, including Rs140 billion to one plant operating at a 15% load factor and Rs120 billion to another at 17%.

These agreements, according to him, allow IPPs to invoice heavily without generating equivalent power, stressing the need for "no capacity payment" agreements. He urged the government to only purchase from the cheapest electricity providers and treat all IPPs as merchant plants.

tribune.com.pk

Corrupt contracts lead to high electricity costs, claims Gohar Ejaz | The Express Tribune

Former minister discloses hefty payments made to IPPs, impacting all consumers
tribune.com.pk tribune.com.pk
 
Karachiites to witness massive hike in power tariff

K-Electric, the sole power utility serving the coastal metropolis, on Saturday, requested an increase of Rs5.45 per unit in the electricity tariff under the fuel cost adjustment (FCA) for May and June 2024.

This proposal, if approved by the National Electric Power Regulatory Authority (Nepra), will significantly exacerbate the financial burden on consumers already struggling with soaring inflation and diminishing incomes.

The utility company has cited increased fuel costs as the primary reason for this request, seeking an additional Rs2.53 per unit for May and Rs2.92 per unit for June. Should Nepra approve this proposal in its upcoming hearing on July 30, consumers will face an additional burden of Rs10 billion.

This request comes in the wake of the government's recent decision to increase the base tariff for domestic consumers by up to Rs48.84 per unit. This decision follows earlier hikes in the petroleum levy and the introduction of new taxes on agricultural income.

According to the Power Division’s notification, this increase will also apply to users in Karachi, excluding those consuming up to 200 units per month who have been granted a three-month exemption.

The power regulator had previously approved a federal government application for hikes in electricity tariffs across various consumer categories, including domestic, commercial, general services, bulk, and agricultural sectors.


Samaa TV
 
Power generation in Pakistan down, cost also decreases over 10% YoY in June

Power generation in Pakistan clocked in at 13,460 GWh (18,090 MW) in June 2024, a decrease of 1.9% YoY as compared to the same period of the previous year.

Back in June 2023, power generation stood at 13,715 GWh (18,433MW), revealed data released by brokerage house Arif Habib Limited (AHL) on Monday.

On a monthly basis, power generation increased by 6.7% as compared to 12,617 GWh registered in May.

The monthly increase was attributed to improved generation from hydel (21.1%), and coal (imported) (66.3%).

For FY24, power generation fell by 1.9% YoY to 127,165 GWh (170,909 MW), compared to 129,591 GWh (174,170 MW) in the SPLY.

The decline was owed to lower generation from nuclear (3.7%) and gas (21%).

Meanwhile, the total cost of generating electricity in the country decreased significantly by nearly 11%, clocking in at Rs8.61 KWh in June 2024 compared to Rs9.63 KWh registered in the same period of the previous year.

The decrease in cost is attributed to the decrease in power generation cost from imported coal, which declined to Rs15.53 KWh, a fall of nearly 29%, as compared to Rs21.79 KWh in SPLY.

In June, hydel emerged as the leading source of power generation, accounting for 35.1% of the generation mix.

This was followed by RLNG, which accounted for 18.1% of the overall generation, ahead of nuclear, which accounted for 14.8% of the power generation share.

Among renewables, wind, solar and bagasse generation amounted to 3.8%, 0.9% and 0.4%, respectively, of the generation mix.


Brecorder
 
Former Interim Commerce Minister Dr Gohar Ejaz has announced that the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) will approach the Supreme Court to challenge the agreements with Independent Power Producers (IPP)

In a tweet, Ejaz revealed that the FPCCI, representing Pakistan's business community, will file a formal petition in the SC that will request the court's intervention in what Ejaz described as an intolerable situation that affects the right to life of every Pakistani.

Ejaz highlighted that under the current IPP agreements, Pakistan pays billions of rupees to companies that do not produce electricity.

He pointed out that the high cost of electricity has become unbearable, driving citizens into poverty and causing businesses to go bankrupt.

Referring to a detailed report written in 2020 by former Interim Energy Minister Muhammad Ali, Ejaz noted that the report exposed losses amounting to hundreds of billions due to government incompetence and IPP misrepresentations.

He questioned why the report had not been fully implemented and why the forensic audit demanded in the report had not been ordered.

"The government must decide whether the survival of 240 million Pakistanis is more important than guaranteed profits for 40 families," Ejaz stated.

He emphasised that Pakistan, rich in resources, needs to eliminate mismanagement to achieve prosperity. "Electricity costs are a crucial issue for Pakistan's industries and directly affect the lives of 240 million people," he added.

Ejaz concluded by warning that Pakistan cannot afford to repeat the same mistakes every few years, simply to allow a new group of "investors" to profit without contributing.

tribune.com.pk

IPP agreements to be challenged in Supreme Court | The Express Tribune

Dr Gohar Ejaz points out that high cost of electricity has become unbearable, driving citizens into poverty
tribune.com.pk tribune.com.pk
 
K-Electric conducts citywide crackdown on electricity theft: 980 FIRs filed

K-Electric, in collaboration with the Federal Investigation Agency (FIA), has ramped up efforts to combat electricity theft across various areas of Karachi by eliminating illegal connections (kundas) from its infrastructure. Anti-theft initiatives are integral to the company’s operations, ensuring network safety and minimizing line losses.

Since the launch of the national campaign against electricity theft in September 2023, over 168,000 cases of electricity theft have been reported, involving the theft of more than 298.7 million units of electricity. In FY 2023-24, actions supported by law enforcement agencies have led to the filing of 980 FIRs and the arrest of 33 individuals across Karachi.

Spokesperson K-Electric stated that 70% of feeders on their network are exempt from loadshedding. However, the remaining 30% of the network experiences loadshedding based on the ratio of losses, as non-payment of bills and electricity theft remain critical issues. Most incidents of electricity theft have been reported in areas such as Baldia, Surjani, Korangi, Orangi, Liaquatabad, Landhi, and Lyari. Individuals involved in electricity theft compromise the safety parameters of the power network, potentially leading to accidents.

Those involved in power theft not only bypass safety protocols of the network but also negatively impact the loss profile of those areas, thus impacting the duration of loadshedding. KE acknowledges that current macroeconomic conditions may be affecting customers’ propensity to pay and is organizing facilitation camps across the city. Customers can visit these camps, as well as KE Customer Care Centers located around the city, to clear their dues and receive assistance in obtaining regularized connections.

K-Electric Spokesperson urged elected officials and community leaders to promote a culture of regular bill payment and actively discourage power theft. These measures are crucial for ensuring uninterrupted power supply to the city.


ARY News
 
Rana Mashhood claims IMF deal kept petrol prices from hitting Rs1,200/litre

Rana Mashhood, Chairman of the Prime Minister’s Youth Programme, has described the recent increases in fuel and electricity prices as "painful".

"If Pakistan had not entered the IMF programme, petrol would have cost Rs1,200 per litre and electricity Rs400 per unit," he stated while speaking to the media during his visit to NED University and the University of Karachi on Wednesday.

Mashhood criticised former PM Imran Khan for his stance on the IMF deal. "He [Imran Khan] had warned that Pakistan would face bankruptcy without the IMF, however, after his departure, Shaukat Tareen was reportedly trying to derail the very deal he once supported," Mashhood said ironically.

Mashhood didn’t hold back on his criticism of political rivals, calling for a ban on military wings of political parties and an apology from PTI for the incidents of May 9.

"Pakistan’s future is bright," he assured, despite the ongoing turmoil.

On the topic of higher education funding, Mashhood lamented the lack of public outrage over past austerity measures and the severe IMF conditions negotiated by Tareen, who was the finance minister during PTI's tenure.

He praised Prime Minister Shehbaz Sharif for maintaining higher education funding amidst budget cuts.

Mashhood also expressed frustration with the judiciary, suggesting that delays in legal cases have hampered political stability.

On a lighter note, he announced the creation of a Sports Endowment Fund and new sports academies, noting that sports are finally being recognised as a serious industry in Pakistan.


Tribune
 
The Establishment,NS and AZ have front men making quite literally billions from IPPs. They produce( or dont) expensive electricity that we can't afford. The poor country is drowning in debt as NS and AZ and the Establishment mint billions. Its time to arrest all those that are scamming a poor country
 
Bewal Express said:
These poor people killing themselves means nothing to this predatory elite.
Look on the bright side- NS, AZ and the Generals get to buy expensive, shiny properties in London, Dubai and Paris.
Click to expand...
Do they still have any type of support among the common Pakistanis?
 
Nepra faces backlash as KE seeks Rs5.50 per unit FCA

Amid a fresh push for a Rs5.45 per unit additional fuel cost adjustment (FCA) for Karachiites in two months, the National Electric Power Regulatory Authority (Nepra) came under criticism from political and business circles of the country’s commercial and industrial capital on Tuesday.

At a public hearing, the Karachi-based private power utility, K-Electric, demanded an additional FCA of Rs2.53 per unit for electricity consumed in May and Rs2.92 per unit for June, with a cumulative financial impact of Rs10.036 billion in two months.

The power utility’s team, led by Chief Financial Officer Aamir Ghaziani, said the consumers of other ex-Wapda distribution companies had already been applied with Rs3.33 per unit additional FCA for May and Rs2.63 per unit for June with a total financial impact of Rs75bn.

This attracted widespread criticism from consumers, who accused the power regulator of acting as a rubber stamp by accepting the power division’s demand for base tariff increases and fuel cost adjustments by power companies.

Various business representatives from Karachi said they were also being charged Rs8.7 per unit combined FCAs for previous months, and the fresh adjustments would increase this additional cost beyond Rs10.8 per unit, potentially leading to unrest in the country’s largest city.

Some of them demanded that industries were being closed due to high energy costs, leading to unemployment. They demanded that K-Electric’s generation license should be cancelled and cheaper surplus supply from the National Transmission and Dispatch Company (NTDC) should be diverted to Karachi.

In April, Nepra fined the Karachi-based utility Rs50 million for technical-based load-shedding, but the situation remains unchanged. “It seems that the authority is supporting the company,” said Imran Shahid, a representative from Jamaat-i-Islami’s Karachi chapter. During recent downpours, over half of the power feeders tripped, reflecting the company’s poor state of affairs.

Mr Shahid expressed concern over allowing dollar-based returns to K-Electric, questioning its authenticity and warning of strong protests if true. He also accused Nepra of failing to protect consumers, allowing Rs70bn claims by K-Electric and not returning Rs54bn owed to consumers under a claw-back mechanism, which had been stayed through courts.

Nepra Chairman Waseem Mukhtar, who presided over the hearing, said all decisions of the regulator were available on its website and could be reviewed and challenged at appellate forums.

Representatives from the Korangi Association echoed concerns over the price hikes, highlighting severe heat and extended load-shedding in May and June. They warned that increased electricity bills could lead to public unrest, suggesting the collection be staggered over winter months.

The Nepra chairman defended the authority’s decisions, emphasising transparency and the collective decision-making process.

DAWN
 

Govt committed to resolving IPPs issues: Naqvi​


Interior Minister Mohsin Naqvi has said that the prime minister has held discussions with the energy minister to address the ongoing energy crisis in the country.

In a statement, Naqvi emphasized the government's commitment to resolving the issues surrounding Independent Power Producers (IPPs) and assured that steps are being taken to address the concerns raised by the Muttahida Qaumi Movement (MQM). "The government will remove MQM's reservations regarding IPPs," stated Naqvi.

Addressing the recent conflict in Parachinar, Naqvi clarified that the clash originated over a land dispute. In response, a ceasefire has been imposed in the area.

"The fight started over a land issue in Parachinar," he explained. "A ceasefire has been imposed in Parachinar, and the government, along with the security forces, brought the conflicting parties to the negotiation table."

Naqvi said he was in touch with the authorities in Khyber Pakhtunkhwa (KP) to ensure security and stability in the region. "I am in touch with the KP authorities on the Parachinar incident," he confirmed. He also affirmed his commitment to continuing efforts related to security, highlighting the government's dedication to maintaining peace and order.

Naqvi also touched upon the ongoing sit-in in Balochistan's Gwadar area, emphasizing that it is a provincial issue. "The sit-in in Balochistan is entirely a provincial matter," he said. Despite this, Naqvi assured that teh government was providing support to the Balochistan government and remained in constant contact with the chief minister to facilitate a resolution.

"I am helping the Balochistan government, and I am in touch with the chief minister," he added.

The minister concluded by affirming the stability of the government and its continued efforts in various domains.

"The government is stable and will continue to work in the same way," he said. Regarding potential talks with the Pakistan Tehreek-e-Insaf (PTI), Naqvi remarked, "God knows with whom PTI founder wants talks."

www.samaa.tv

Interior Minister Mohsin Naqvi addresses energy crisis, Parachinar conflict, Balochistan sit-in

Interior Minister Mohsin Naqvi discussed the energy crisis and IPP issues with the Prime Minister, imposed a ceasefire in Parachinar, and addressed the ongoing sit-in in Balochistan. Naqvi assured continued government support and stability, emphasizing efforts to resolve conflicts and maintain...
www.samaa.tv www.samaa.tv
 
PM Shehbaz extends electricity bills' due date by 10 days

Prime Minister Shehbaz Sharif has directed power distribution companies to extend the date of payment of electricity bills by 10 days.

According to the Power Division announcement, there will be an extension of 10 days in the due date for payment of electricity bills for July and August 2024.

It is said the PM issued the direction in view of the problems of electricity consumers.


Dunya News
 
IPPs should be paid as much as they produce power: Gohar Ejaz

Former caretaker minister Gohar Ejaz has said that the government paying two trillion rupees to IPPs, which are generating 30 percent of their capacity.

Addressing a press conference, he said that 70 percent payment being taken without generating electricity. “The Independent Power Producers should be paid as much amount according to their power generation,” Gohar Ejaz said.

“We have only one demand, pay as much amount to an IPP as it produces power,” he said.

“We have prepared a petition and going to the Supreme Court,” former minister said. “Everything will clear with forensic audit of the IPPs,” he said.

“It is not the government’s job to do business,” he stressed.

arynews.tv

IPPs should be paid as much as they produce power: Gohar Ejaz

ISLAMABAD: Former caretaker minister Gohar Ejaz has said that the government paying two trillion rupees to IPPs, which are generating 30 percent of their
arynews.tv arynews.tv
 
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K-Electric consumers to get heftier bills in August

The electricity consumers of Karachi are expected to receive heftier bills, as K-Electric decided to include three-month adjustments in August’s power tariff, ARY News reported on Thursday.

K-Electric issued a notification announcing their decision to include last year’s three-month adjustments in the upcoming bills, significantly increasing the financial burden on consumers in Karachi.

According to the notification, consumers will pay an extra Rs 3.22 per unit for the three-month adjustment from the previous year.

Additionally, there will be an added charge of Rs 0.66 per unit for the August 2023 adjustment, Rs 1.77 per unit for the November 2023 adjustment, and Rs 0.79 per unit for the December 2023 adjustment.

Furthermore, K-Electric consumers will also face an adjustment from January to March 2024, amounting to an extra Rs 0.93 per unit.

It is worth mention here that the pending adjustments for the month May and June 2024 are also expected to add to the costs, with K-Electric seeking an increase of Rs 2.53 per unit for May and Rs 2.92 per unit for June in the upcoming bills.


arynews.tv

K-Electric consumers to get heftier bills in August

KARACHI: The electricity consumers of Karachi are expected to receive heftier bills, as K-Electric decided to include three-month adjustments in August’s
arynews.tv arynews.tv
 
Debt ridden Pakistan and its masses has no respite has unaffordable electricity prices are falling heavy on public, citing the irrational agreements done during PPP & PMLN regime, IK govt. renegotiated it in 2018 and now $ rate was fixed at 180, other it was more disaster.

With the ongoing hue and cry in the country on electricity prices it is revealed by an Ex Caretaker Minister that around 2billion being paid to a IPP Co. without producing any Electricity in lieu of capacity charges.

On further investigation it is revealed that Mr. Salman Shehbaz son of current PM SS is the owner of one IPP and has stakes in another IPP.

Ever heard a Punjabi proverb " kutti choraan nal ralli" in English we can say " Biich is with the thieves"

en.dailypakistan.com.pk

PM Shehbaz's son among 7 political figures who own IPPs in Pakistan, made billions

Capacity payments or the money paid to independent power producers (IPPs) is the most discussed issue in the media and the society these days in Pakistan. The
en.dailypakistan.com.pk en.dailypakistan.com.pk
 
Karachiites, forget relief and get ready for another tax in KE bills

Already overburdened with various taxes, the people of Karachi will have to pay up to Rs400 extra in their electricity bills for the current month after the Karachi Metropolitan Corporation (KMC) formally notified the collection of controversial Municipal Utility Charges and Tax (MUCT) through K-Electric, it has emerged.

Officials both at the KMC and the KE confirmed the implementation of the MUCT that would, according to the estimates, generate more than four billion rupees every year for the municipal administration.

A KMC official said that the KE consumers in the city will see a new head in their next bill under the title of MUCT.

The KMC has notified the MUCT on electricity connections within Karachi, except cantonment areas, from August 1, 2024, he said.

“The MUCT collected through electricity bills will support Karachi’s infrastructure projects and enhance essential services. The utilisation of these funds will be fully transparent and monthly updates will be available on KMC’s website. It will give enough financial space to the KMC that would also benefit even the key tier, union council, of the city’s municipal administration.”

A KE official replied in the affirmative when asked about the implementation of the MUCT and collection of extra amount from Karachiites in the next month’s electricity bills.

The KMC and the KE had originally signed an agreement in June 2022 which had finally become effective from July after the City Council approved the levy of the charges.

According to the agreement, the KE will collect the MUCT from its domestic and non-domestic consumers living within the jurisdiction of KMC through their monthly power bills. The consumers will be charged as per category, which will be notified by the KMC from time to time.

Referring to different slabs of the MUCT, an official said that the KE consumers receiving bills of upto 100 units would remain exempted from the new tax and those consuming units between 101 and 200 would pay Rs20 every month.

“Similarly, those who are consuming units between 201 and 300 will pay Rs40 and those who are consuming between 301 and 400 units will pay Rs100 with their electricity bills,” he said.

“The KE consumers consuming 401-500 units will pay Rs125, the consumers of units between 501 and 600 would pay Rs150, the consumers of 601 and 700 units would pay Rs175 and those consuming more than 700 units would pay Rs300 in their monthly bills. All categories of commercial and industrial consumers would pay Rs400 each with their electricity bills,” he added.

However, challenges are still not over for Mayor Barrister Murtaza Wahab, who, only a few days ago, was issued a notice by the SHC on a contempt of court application.

The contempt application has been moved on behalf of some Jamaat-i-Islami leaders and the SHC is due to take up the matter on August 7.

DAWN
 
Government to terminate contracts with 15 IPPs: report

The government has decided to review and terminate contracts with 15 independent power producer (IPP) companies in an effort to provide relief to the public burdened by high electricity costs, Express News reported.

The government has initiated relief measures and a task force has finalised the framework for this purpose, the news outlet reported while citing sources within the government.

After the decision, the contracts with six IPPs established in the 1990s would be “immediately terminated” while the agreements with nine other companies would be phased out gradually.

Companies whose contracts will be terminated without extension include Gul Ahmed Energy Limited, Kohinoor Energy, Liberty Power Project, Tapal Energy Limited, Attock Generation, and KAPCO. There would not be any extension in agreements signed with them.

Moreover, the agreements with Lal Pir, Pakgen, Fauji Kabirwala Power, Habibullah Coastal, Japan Power Generation, Saba Power, HUBCO, Southern Electric Power, and Rousch Power would be phased out over the next three to five years.

They added that the agreements with the IPPs installed during the 1990s would also be gradually terminated over the next three to five years.

Meanwhile, a framework has been developed for consumers with more than 201 units, which includes a decision to change the policy of keeping such consumers in the same slab for six months.

Special slabs would be maintained for consumers with more than 201 units. Consideration was being given to setting a rate of Rs26 per unit for electricity consumers with more than 201 units.


AAJ News
 
NEPRA approves Rs2.56 per unit hike in FCA

The National Electric Power Regulatory Authority (Nepra) has increased the per-unit price of electricity by Rs2.56, making it further difficult for people already paying heavy electricity bills.

“The above adjustment of Rs.2.5627/kWh shall be applicable to all the consumer categories except Electric Vehicle Charging Stations and lifeline consumers,” the authority said in a notification on Thursday.

The authority announced the decision in response to a request from the Central Power Purchasing Authority (CPPA), which had sought an increase of Rs2.63 per unit.

NEPRA stated that the price increase has been made under the fuel adjustment clause. This increase is part of the monthly adjustment for June.

“The said adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of June 2024. XWDlSCOs shall reflect the fuel charges adjustment in respect of June 2024 in the billing month of August 2024,” it said.

In August, the Power Division stated that a relief of 77 paise per unit is being provided in the monthly adjustment, while the fuel price adjustment in July was Rs3.33 per unit, which would decrease to Rs2.56 per unit in August.


AAJ News
 
Sindh govt announces free electricity up to 100 units

Sindh Energy Minister Syed Nasir Hussain Shah said that the provincial government would start provisioning 100 free units of electricity soon, ARY News reported.

In a statement, the energy minister said that the Pakistan People’s Party (PPP) in its election manifesto had promised to provide 300 free units to the people.

He said that citizens are worried due to inflate electricity bills, saying that ‘significant’ work has been done in Sindh to provide 300 units of free electricity.

“We are starting with providing free 100 units, followed by 200 and eventually 300 units,” Syed Nasir Hussain Shah added.

The energy minister said that the Sindh government planned two solarisation programme, aiming to distribute solar panels to 200,000 holds.

“We will distribute 50,000 solar panels by August,” the energy minister added.

Syed Nasir Hussain Shah said that solar parks are also being built to generate electricity which would be supplied to to the National Transmission and Despatch Company (NTDC).

Earlier, the energy minister said that the provision of free solar panels will be started by August.

Presiding over a meeting on the free solar supply project, Syed Nasir Hussain Shah also directed to speed up the measures to ensure the supply of solar panels to needy persons by the end of August.

“We will start the process of distributing solar panels in each division and district soon,” he added.

Speaking on the occasion, Syed Nasir Hussain Shah said that the Sindh government wants to provide relief to the people by providing cheap electricity.


arynews.tv

Sindh govt announces free electricity up to 100 units

KARACHI: Sindh Energy Minister Syed Nasir Hussain Shah said that the provincial government would start provisioning 100 free units of electricity soon,
arynews.tv arynews.tv
 
Karachi citizens burdened with municipal tax in electricity bills

The K-Electric utility has included the Karachi Metropolitan Corporation (KMC) tax in the electricity bills for the month of July, giving a major blow to the already overburdened citizens of the city.

Consumers using between 101 to 200 units will have to pay an additional Rs20 as tax. Those consuming 201 to 300 units will be charged Rs40 in municipal tax.

For consumption between 301 to 400 units, the tax will be Rs100 while those using 401 to 500 units will have to pay Rs125 in municipal tax. Consumers using over 700 units will be charged Rs300, and commercial users will have to pay Rs400 in municipal tax.

On the other hand, the Karachi mayor claimed that the tax collection would lead to improved development and infrastructure projects in the city. But the citizens are already struggling with the high cost of living and are now faced with an additional burden on their electricity bills.


AAJ News
 
Prime Minister Shehbaz Sharif has announced that he will soon share the "good" news of a reduction in electricity bills with the nation, noting that without a dip in electricity prices, Pakistan's industry and agriculture cannot progress.

During a speech at the Independence Day ceremony, Prime Minister Shahbaz announced that he will also present a five-year economic plan soon.

Sharif highlighted the sacrifices made by Muslims under the leadership of Quaid-e-Azam, which led to the creation of Pakistan.



He acknowledged the challenges faced by the nation over the past 77 years, including internal and external conspiracies and economic decline.

Sharif addressed concerns about inflation, unemployment, and high electricity bills affecting the public. He emphasized the need to address these issues and learn from past experiences to plan for the future.

He noted that despite predictions of the country's failure, Pakistan has persisted for 77 years and recognized the achievements of those who contributed to the country's development.

Sharif stressed the importance of moving away from dependency and aligning with Quaid-e-Azam’s principles to overcome current challenges.

The Prime Minister assured that the government is working diligently to reduce electricity prices and will provide updates on this in the coming days.

He also plans to unveil a five-year economic plan, expressing his commitment to addressing inflation and lowering electricity rates to support economic growth.

SOURCE: https://tribune.com.pk/story/248801...-reduction-with-nation-soon-pm-shehbaz-sharif
 
Govt to put IPPs payment burden on consumers

During a meeting of the National Assembly’s Standing Committee on Energy, the Secretary of Energy – Fakhre Alam Irfan – stated that both the payments to IPPs and the interest on the revolving loan will be borne by the public.

He stressed that the government is being pressurized by the International Monetary Fund (IMF), and cannot afford to increase circular debt. Despite discussions with the IMF, the organization remains firm on its stance.

Additionally, the government is moving forward with the privatization of Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GAPCO), and Faisalabad Electric Supply Company (FESCO), aiming to relieve itself of the financial strain these companies currently impose.

Power Division officials further highlighted that while NEPRA has approved an 11 percent loss allowance, distribution companies are still incurring significant losses, with Punjab’s DISCOs alone reporting losses of Rs 150 billion.

arynews.tv

Govt to put IPPs payment burden on consumers

ISLAMABAD: The government has announced plans to shift the financial burden of payments to Independent Power Producers (IPPs) onto citizens already
arynews.tv arynews.tv
 

Mustafa Kamal critcises power price cut only for Punjab​


Muttahida Qaumi Movement-Pakistan (MQM-P) leader Mustafa Kamal on Saturday rebuked Pakistan Muslim League-Nawaz (PML-N) supremo Nawaz Sharif and Punjab government for announcing relief in electricity prices for Punjab only.

The PML-N supremo on Friday said the Punjab government had prepared a relief package by cutting the power tariff by Rs14 per unit for people consuming up to 500 units of electricity.

"The relief will be given in the bills of August and September," he maintained.

The former prime minister said that the provincial government had cut its development fund to provide the relief in utility bills.

In response to the PML-N leader's announcement, Kamal said it was an unwarranted announcement as instead of Nawaz, Prime Minister Shehbaz Sharif should have provided relief for the entire country.

Hoping the PM will announce relief in power price for all parts of the country, the MQM-P leader rejected the decision to cut the price in Punjab only. “Price for the utility should be cut down by Rs20 a unit nationwide,” he demanded addressing a press conference in Karachi.

The announcement, exclusively shedding power price in Punjab, had ensued a feeling of despair in other regions, he said.

Meanwhile, Kamal demanded uniform electricity price throughout the country, presenting a solution for bringing the electricity price down.

"Instead of blocking the arteries, we presented the government a solution to resolve the issue of inflated electricity bills," the politician said.

He claimed Pakistan possessed electricity beyond its requirement as it had the ability to generate more than 45,000 megawatts electricity. However, he said, the country’s transmission lines had the capacity of merely 22-25,000 megawatts.

Summing up his suggestion for providing people relief, Kamal said the government should sit down and talk with the 30% local and 50% public independent power producers (IPPs) in this regard, keeping aside the 20% foreign IPPs initially, as they had international agreements.

“These IPPs have already made billions of rupees (in terms of charges for their services),” he said.

After that, the politician suggested, the government should sit with the foreign IPPs as well and talk to them about the prevailing situation.

He proposed privatisation of electricity distribution companies and giving licence to more companies in a region too.

www.thenews.com.pk

Mustafa Kamal critcises power price cut only for Punjab

KARACHI: Muttahida Qaumi Movement-Pakistan leader Mustafa Kamal on Saturday rebuked Pakistan Muslim League-Nawaz supremo Nawaz Sharif and Punjab government for announcing relief in electricity...
www.thenews.com.pk www.thenews.com.pk
 
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