Electricity and Gas prices to triple as subsidies for rich remain

[FearlessRoar]

Karachi to bear brunt of electricity price hike​

Karachi’s electricity consumers are set to bear the brunt of increased costs, even as relief is offered to the rest of the country.

The rise in electricity prices, driven by K-Electric’s reliance on expensive and inefficient energy sources, is expected to significantly impact residential, industrial, and commercial users in the city over the next six months.

The Central Power Purchasing Agency (CPPA) has requested a reduction in electricity prices for all distribution companies (Discos) across Pakistan, except K-Electric, which serves the port city. This means that while the rest of Pakistan will enjoy cheaper electricity, Karachi's residents and businesses will have to pay more.

The request, submitted to the National Electric Power Regulatory Authority (Nepra), seeks to reduce electricity prices by 31 paisa per unit for all Discos except K-Electric.

However, K-Electric has requested an increase in electricity prices due to the high cost of generating electricity from expensive sources like RLNG and furnace oil.

According to Johar Ali Kandahari, President of the Korangi Association of Trade and Industry, this move will have a devastating impact on Karachi’s industry.

“The cost of production will increase so much that the industry of Karachi will necessarily be closed,” he warned.

Kandahari also pointed out the unfairness of the situation, where the rest of Pakistan enjoys lower electricity prices while Karachi is forced to pay more. “On the one hand, the rate is low by all Discos across the country, while it is high for K-Electric,” he said.

The Punjab government’s reduction of Rs.14 per unit will also benefit only the industries of Punjab, leaving Karachi's industries at a disadvantage. "If cheap goods from other provinces will come to Karachi, how will Karachi's industry work?" Kandahari asked.

“This practice is akin to slow poison for Karachi’s industry,” Kandahari remarked, emphasizing the potential long-term damage to the city’s economic health if the situation is not addressed.

Karachi Faces Power Tariff Hike as Rest of Pakistan Enjoys Relief

K-Electric's reliance on expensive energy sources and CPPA's request for price reduction for all Discos except K-Electric will impact residential, industrial, and commercial users in Karachi.

www.samaa.tv

 

[Bewal Express]

NS and AZ along with their friends with guns have minted trillions from a poor country through IPPs and the Sovereign guarantees. And the fact that fat slob blamed IK for the hike in electricity prices when he knows his friends and family are wholly responsible is one of the reasons they are hated so much by PKs

 

[The Bald Eagle]

The Muttahida Qaumi Movement Pakistan (MQM-P) and Jamaat-e-Islami have called for a reduction in electricity tariffs across the entire country, not just in Punjab, and the implementation of a uniform tariff nationwide

Senior MQM-P leader and Member of the National Assembly, Mustafa Kamal, criticised Nawaz Sharif’s announcement of reduced electricity rates in Punjab, stating that it has deepened feelings of deprivation across Pakistan. "Reducing electricity bills only for the people of Punjab sends the wrong message," Kamal said.

He further commented that Prime Minister Shehbaz Sharif, rather than Nawaz Sharif, should have addressed the nation. Labeling Nawaz Sharif’s press conference as disappointing, Kamal demanded that electricity prices be reduced by up to Rs20 per unit across the country.


Meanwhile, Jamaat-e-Islami chief Hafiz Naeemur Rehman echoed similar sentiments, stating that the relief in electricity prices announced by Nawaz Sharif and Maryam Nawaz for Punjab should be extended to all of Pakistan.

"If electricity prices can be reduced in Punjab, why not in Sindh?" Rehman questioned, adding that former President Asif Ali Zardari represents the federation, which operates on taxes collected from Karachi.

In response to Mustafa Kamal’s statement on the social media platform X, Maryam Nawaz asserted that "Punjab did not receive relief for free; it paid Rs45 billion from its budget." She suggested Kamal discuss with his provincial government to provide similar relief to the people of Sindh.

Mustafa Kamal responded on social media, thanking Maryam Nawaz for her advice. He added that had the Sindh government behaved better over the past 15 years, MQM-P wouldn’t need to unconditionally support them.

He urged the prime minister to have mercy on the people of Sindh, particularly Karachi, reminding him of his promises to provide relief and expressing hope for their fulfilment.

Source: The Express Tribune

 

[Kianig89]

So a new thorn is seeded by only reducing prices in Punjab, would have been better if this was started from Balochistan.

No wonder our political leaders are buffoon and expert in gimmicky.

What will be IMF reaction on it

 

[FearlessRoar]

Is government charging Rs80 per unit for electricity produced at Rs9?​

Former caretaker Minister of Commerce, Dr Gohar Ejaz, has raised concerns about the steep rise in electricity bills, questioning how the cost per unit has reached as high as Rs80 when the production cost in July was only Rs9 per unit.

In a tweet, Dr Ejaz pointed out that in July, the total average electricity generation was 20,000 megawatts, with 35% of this, or 7,000 megawatts, generated from hydropower sources.

He highlighted that the production cost for electricity in July was Rs9.03 per unit, yet consumers are being billed at rates of Rs40, Rs60, or even Rs80 per unit.

In the tweet, Dr Gohar Ejaz stated, "In July, the total average electricity generation was 20,000 megawatts, with 35% of this—7,000 megawatts—coming from hydropower sources." He further explained, "The production cost for electricity in July was Rs 9.03 per unit. So how are the bills reaching Rs 40, Rs 60, or even Rs 80 per unit?"

Dr Gohar criticised the current situation, attributing the high bills to "mismanagement and the payment of capacity charges for electricity that is not actually produced."

He noted that Pakistan has the capacity to generate over 43,000 megawatts of electricity but stressed that "Pakistan should only pay for the electricity that is actually generated."

He called on the federal government to provide fairness for all consumers—residential, commercial, industrial, and agricultural—highlighting that "many are struggling under the current rates."

Dr Gohar also commended the Punjab government's decision to offer relief by reducing the cost per unit to Rs 14 for consumers using up to 500 units over the next two months, calling it "praiseworthy."

Earlier on August 5, Dr Ejaz highlighted the discrepancy between Pakistan's stable currency rates and the State Bank of Pakistan's (SBP) high interest rates, which have been maintained at 19.5% over the past year.

He argued that these rates, significantly above the inflation rate, are intended to control inflation but at a substantial economic cost.

"The country's total net federal tax collection, Petroleum Development Levy (PDL), and other income amount to Rs10.6 trillion," Dr. Ejaz noted, with Rs 9.8 trillion of this sum dedicated to servicing domestic debt of Rs45 trillion.

He pointed out that high-interest rates have resulted in an additional Rs 3 trillion being paid over inflation-adjusted costs.

Is government charging Rs80 per unit for electricity produced at Rs9? | The Express Tribune

Dr Gohar says production cost for electricity in July was Rs9.03, yet consumers are being billed at higher rates

tribune.com.pk

 

[Cricket Warrior]

Governor Tessori calls for reducing electricity prices in Sindh

Sindh Governor Kamran Tessori says if the electricity prices in Sindh are not adjusted to match those in Punjab, public feelings of deprivation will increase.

Speaking at a press conference on Sunday, Tessori announced his intention to write to the Sindh government to request a reduction in electricity prices.

He also called on businessmen and NGOs to support those affected by recent natural disasters, noting that torrential rains have worsened conditions in the province. Tessori revealed plans to distribute 10,000 ration boxes to rain victims.

Addressing the controversy over Arshad Nadeem’s reward money, Tessori clarified that no funds from the Sindh government were awarded to the athlete on August 13 or 14. He also announced that a programme to honour martyrs will be held at the Governor House on Sept 6.


Dunya News

 

[Cricket Warrior]

Gas tariff to remain unchanged until December to January: Musadik

The gas tariff would remain unchanged until the winter months of December and January, Petroleum Minister Musadik Malik said on Tuesday.

“The gas tariff has not been increased and the government is striving to avoid placing any additional burden on the people,” he said at a press conference in Islamabad.

“If the need arises to provide relief, we will make decisions in consultation with all provinces and move forward together. However, our aim is to avoid increasing gas prices.”

98% of domestic electricity consumers, who use up to 500 units, have been provided relief by the Punjab government, he said and added that that 86% of those consuming up to 200 units have also received relief from the federal government. The petroleum minister urged other provincial governments to offer similar relief if they wish.

He urged political leaders to refrain from spreading “chaos” and participate in parliamentary committees to contribute to the nation’s development.

Musadik highlighted that “certain elements are attempting to create obstacles in the country’s progress, prosperity, and development. These are the people who do not want to see the country progress.”

Without taking a name, he said the “deputy chairman” was in jail for committing $190 million in corruption while the “real” chairman has also been arrested. “One has been arrested in the Top City corruption case, while the other is detained in a $190 million corruption case,” he added.


AAJ News

 

[Cricket Warrior]

NEPRA hikes power tariff for Karachiites

The National Electric Power Regulatory Authority (NEPRA) approved K-Electric’s (KE) request for a hike in electricity tariff for Karachi consumers, ARY News reported.

The price of electricity has been increased by Rs 5.75 per unit under fuel adjustment for May and June. The KE’s consumers will be charged in the bills of October and November

According to NEPRA’s notification, the price of electricity has been increased by Rs 2.59 per unit for May’s fuel adjustment and Rs 3.17 per unit for June’s fuel adjustment.

The increase in electricity prices for KE consumers is expected to add a burden of over Rs 10 billion on Karachiites.

The NEPRA heard KE’s request for provisional monthly fuel charge adjustments (FCA) on July 30. The regulatory issued its decision on KE’s requests for FCA at PKR 2.53 and PKR 2.92 per kWh for May and June 2024 respectively after scrutiny.

Earlier on August 8, the NEPRA announced an increase in electricity tariff by Rs 2.56 per unit. As per the notification issued by NEPRA, the hike comes as part of the monthly fuel adjustment for the month of June, while the consumers will see the extra charges reflected in their August bills.

The increase was not applicable to Lifeline consumers or K Electric customers.


ARY News

 

[The Bald Eagle]

Federal Minister for Power, Awais Leghari, announced on Monday that the ruling coalition government is considering the installation of a prepaid meter system for electricity, akin to the prepaid system used for mobile phones

During a press conference in Multan, Leghari underscored the government’s commitment to eradicate electricity theft in the country.

He assured that measures are being taken to curb this menace and provide convenience to electricity consumers.

The minister revealed that discussions are underway with power distribution companies to ensure the disbursement of the Rs45 billion relief package to every consumer.

The prepaid meter system, if implemented, will enable consumers to pay for electricity in advance, reducing the likelihood of theft and default payments.

The energy minister further said that the government has proposed its reform plans and energy vision to the National Energy Administration of China.

Awais Leghari said that an important aspect of these talks involved the re-profiling of debt amounting to $8.5 to $9 billion, which is expected to reduce electricity prices and increase demand for electricity.

He further stated that the finance minister and other officials have engaged with Chinese bankers for potential investments in Pakistan’s power sector.

Another key component of these reforms, he said, involves converting electricity generation plants from imported coal to local coal, which could significantly lower the cost per unit of electricity.

He noted that four coal plants, including the government-owned Jamshoro plant, were being considered for conversion to local coal, aiming to reduce electricity costs from approximately 24 rupees per unit to around 8 rupees per unit.

Source: Ary News

 

[Cricket Warrior]

Govt approves massive hike in electricity prices

The Pakistani government has approved a significant increase in electricity prices, impacting millions of consumers, particularly those in the lower income brackets. This move, driven by the International Monetary Fund’s (IMF) demands for a bailout package, has sparked outrage and protests.

The new rates, effective from July, see a per-unit price increase of up to Rs5.72%.

This translates to an additional burden of hundreds of billions on consumers this fiscal year. This is the largest percentage increase in electricity prices for low-income groups in Pakistan’s history.

According to the power division, the average electricity price has increased by Rs4.55 per unit, pushing the national average uniform rate from Rs29 to Rs35.50 per unit. This translates to a significant price hike for consumers across the board.

The government has implemented a tiered system, with the most significant increases affecting those consuming 1 to 100 units per month. This segment, primarily consisting of the poorest households, faces a hike of Rs3.95.

Furthermore, the government has introduced fixed monthly charges ranging from Rs200 to Rs1,000 per unit for residential consumers, adding another layer of financial strain.

The decision to raise electricity prices was made through a circulation process, bypassing open discussion and debate in the federal cabinet. This lack of transparency has fueled public anger and accusations of prioritizing IMF demands over the welfare of citizens.

The government’s justification for the price hike centers around addressing decades of mismanagement and flawed energy policies. However, critics argue that the burden should not fall disproportionately on the poorest segments of society.

The new industrial tariff, despite the government’s initial promise of a lower rate, has also been increased to Rs37.83 per unit, aligning with the IMF’s requirements.


AAJ News

 

[Kianig89]

An organisation has 600+ employees, out of which 450+ are baseline workers who earn between 35k-40k and their elect bill is 9k-10k. Some of them live on rent where old school building has one meter for 2/3 flats so they on average one family pays 18-22k as elect bill, where as their monthly rent is 15k-18k.

Really this electricity bills are destroying the budget of poor and salaried class.

 

[FearlessRoar]

Crucial IPPs information ‘concealed’ from Senate body

Speaking to the media, Senator Mohsin Aziz also expressed concern that the committee’s request for a regional comparison of power plants was ignored.

“The committee had asked for a comparison of power plants in the country with those in neighboring countries, but it was not provided,” Senator Moshin Aziz added.

The committee was informed that a consultant is being hired for the purpose of analysing data.

Senator Moshin Aziz said that he became the Senate Standing Committee on Power chairman for serving the nation, vowing to take the matter to its logical conclusion.

He said that the National Electric Power Regulatory Authority (NEPRA) allowed IPPs to profit by 15 to 16 percent on equity.

“In contrary to the NEPRA’s permission, balance sheets of IPPs show a staggering profit of 60 to 70 percent,” the Senate Standing Committee on Power chairman added.

It may be noted the government announced plans to shift the financial burden of payments to Independent Power Producers (IPPs) onto citizens already struggling with inflation.

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.

Earlier on August 20, Federal Minister Awais Leghari said that Prime Minister (PM) Shehbaz Sharif will give good news to people over IPPs within a month or two.

Addressing youth convention in Islamabad, the energy minister said that the steps being taken to address energy crisis in the country. “Reforms are inevitable in energy sector,” he said.

He said the energy billing has been 1100 billion with 400 billion losses in it.

“We silently worked over the issue of the IPPs but all and sundry joined the bandwagon,” energy minister said. “It became good for us as it brings pressure over the IPPs,” he said.

Crucial IPPs information 'concealed' from Senate body

ISLAMABAD: Senate Standing Committee on Power Chairman Mohsin Aziz revealed that certain individuals attempted to conceal crucial information from the

arynews.tv

 

[Cricket Warrior]

NEPRA increases power tariff by Rs1.75 per unit

The National Electric Power Regulatory Authority increased on Friday the electricity tariff by Rs1.75 per unit for the fourth quarterly adjustment, which will be reflected in bills for September, October, and November.

The authority has sent its decision to the federal government. The adjustment for the third quarter of the fiscal year 2023-24 will conclude in August with an increase of Rs0.93 per unit. For September bills, an additional Rs0.82 will be added as part of the quarterly adjustment.

In a related decision, NEPRA also approved a reduction of Rs0.37 per unit in the monthly fuel charge adjustment for July. A hearing on this request was held on August 28.

Relief will be provided in the September bills, with the fuel charge adjustment for June reflecting an increase of Rs2.56, which was incorporated into August bills. For September bills, there will be a reduction of Rs2.93 in the fuel price adjustment.

When both adjustments are combined, consumers will receive relief of Rs2.11 per unit in their September bills, according to NEPRA.

This comes amid rising electricity prices in the country as people seek relief and demand government review the agreements with independent power producers (IPPs).

In July, Prime Minister Shehbaz Sharif announced that the government would provide relief to people consuming less than 200 units of electricity for the next three months.


AAJ News

 

[Cricket Warrior]

NEPRA slaps Rs1 crore fine on K-Electric for fatal incidents

The National Electric Power Regulatory Authority (NEPRA) has issued a major decision against K-Electric, imposing a Rs1 crore fine following a show-cause notice issued earlier this year regarding fatal incidents in 2022 and 2023.

The 19-page decision mandates K-Electric to pay Rs35 lakh to the family of a deceased citizen and to offer a job to a member of the same family.

NEPRA has also ordered K-Electric to submit a report within two months confirming implementation of the order.

This decision comes after NEPRA issued a show-cause notice to K-Electric earlier this year, demanding an explanation for the multiple fatal incidents related to their electricity supply.

The incidents, which occurred in 2022 and 2023, resulted in the deaths of several citizens.


AAJ News

 

[Cricket Warrior]

Slight decrease in electricity prices on the cards

The Central Power Purchasing Agency (CPPA) has filed a petition with the National Electric Power Regulatory Authority (NEPRA) seeking a reduction in electricity prices for consumers served by government-owned distribution companies.

The petition proposes a decrease of 57 paisa per unit for a period of one month. The CPPA has requested the reduction in the Fuel Cost Adjustment (FCA) for the month of August.

NEPRA is scheduled to hold a hearing on the CPPA’s petition on September 26.

Following the hearing, NEPRA will make a decision regarding the proposed price reduction.


AAJ News

 

[Cricket Warrior]

KE refutes CEO’s statement related to license cancellation

K-Electric has clarified that recent reports attributing a statement to the company’s CEO regarding the cancellation of its license are false, ARY News reported.

The company’s spokesperson categorically denied any discussion of such a matter, stating, “CEO of K-Electric did not discuss license cancellation, and it was falsely reported.”

K-Electric reaffirmed its commitment to continuing its services and emphasized that any claims suggesting otherwise were misleading.

Earlier in the day, it was reported that the K-Electric CEO, Moonis Alvi, urged the Sindh government to ‘revoke’ the license of the power distribution company and assume responsibility for providing electricity in the province.

During a Sindh Assembly Special Committee meeting, Moonis Alvi acknowledged that K-Electric carries out load shedding but clarified that the company does not set electricity rates.

He explained that load shedding occurs primarily in areas with high electricity theft, in line with findings from a joint committee with the government, emphasizing that in regions where theft is minimal, there is no load shedding.

He also highlighted that unpaid bills in specific areas lead to further outages, a topic previously discussed in the National Assembly.

Committee members, including Sadia Javed, Shabbir Qureshi, and Salim Baloch, expressed concerns over K-Electric’s operations.

Javed pointed out that K-Electric faces numerous complaints from the people of Karachi, while Qureshi criticized the company for justifying load shedding based on theft and questioned why consumers are penalized for the actions of others.


ARY News

 

[Cricket Warrior]

Punjab govt’s electricity relief to end soon

The Punjab government’s relief for electricity consumers using up to 200 units is going to end on September 30, ARY News reported.

Starting from October 1st, the basic tariff for consumers using up to 200 units per month would increase to Rs 7.12 per unit, as the three-month Punjab government relief for electricity consumers is going to end on September 30.

For non-protected consumers using 1 to 100 units, the tariff will increase by Rs 7.11 to Rs 23.59 per unit. For non-protected consumers using 101 to 200 units per month, the tariff will increase by Rs 7.12 to Rs 30.07 per unit.

On the other hand, for protected consumers using 1 to 100 units, the tariff will increase by Rs 3.95 to Rs 11.69 per unit and for protected consumers using 101 to 200 units per month, the tariff will increase by Rs 4.10 to Rs 14.16 per unit.

For lifeline consumers, using up to 50 units per month, the tariff will remain at Rs 3.95 per unit and for lifeline consumers using 51 to 100 units per month, the tariff will remain at Rs 7.74 per unit.

Punjab govt's electricity relief to end soon

ISLAMABAD: The Punjab government's relief for electricity consumers using up to 200 units is going to end on September 30, ARY News reported. Starting

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