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

arynews.tv

 

[Cricket Warrior]

Govt vows significant drop in power tariff soon for citizens

The Federal Minister of Energy announced a major target to reduce electricity prices by Rs 8 to 10 per unit, with the long-term goal of bringing prices below Rs 10 per unit across Pakistan, ARY News reported on Thursday.

Speaking at a press conference, the energy minister – Owais Leghari – stressed that this price drop would boost industrial growth and offer relief to consumers, particularly the middle and lower-middle classes.

He highlighted the government’s recent efforts, which included talks with private Independent Power Producers (IPPs), reprofiling loans with China, and revisiting agreements made by the previous PTI government.

Govt vows significant drop in power tariff soon for citizens

ISLAMABAD: The Federal Minister of Energy announced a major target to reduce electricity prices by Rs 8 to 10 per unit, with the long-term goal of

arynews.tv

 

[FearlessRoar]

OGRA seeks clarification from SSGC on geyser charges in gas bills

In a statement, OGRA said that it has asked SSGC to provide a written response regarding the prices of geysers and their installation charges.

The authority has clarified that consumers are not bound to install geysers through SSGC contractors and can install them themselves.

However, OGRA emphasized that it is the consumer’s responsibility to ensure the installation of geysers to conserve energy. Additionally, gas companies have the right to inspect geysers in consumers’ premises to ensure safety and compliance with regulations.

Yesterday, the Sui Southern Gas Company (SSGC) started collecting conical baffle charges under geyser campaign.

According to details, SSGC sent additional bills amounting to Rs2,085 to the consumers under the name of “conical baffle” charges. Millions of consumers within the 3.2 million customer network are distressed due to these extra charges.

It is being revealed that consumers received inflated bills regardless of whether geysers were installed in their homes. Extra charges were applied before the installation of conical baffles.

Following the outcry of consumers, the OGRA issued a clarification, stating that the installation of Conical Baffles has been authorized to ensure safety and reduce gas bills for consumers.

The spokesperson advised that consumers facing charges without having a geyser should file complaints with the company or OGRA.

SSGC officials stated that surveys were conducted for the installation of Conical Baffles, and charges were applied after OGRA’s approval. Contractors have begun the installation process.

SSGC urged consumers to contact the nearest Customer Facilitation Center (CFC) for any complaints regarding Conical Baffles.

OGRA seeks clarification from SSGC on geyser charges in gas bills

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has sought a response from the Sui Southern Gas Company (SSGC) regarding the charges for geysers in

arynews.tv

 

[BouncerGuy]

Power rates to rise despite lower fuel costs

The National Electric Power Regulatory Authority (Nepra) announced on Wednesday that electricity rates for consumers of ex-Wapda distribution companies (Discos) will be higher next month despite lower fuel costs.

During a public hearing on fuel cost adjustments (FCA) for September’s electricity consumption, a Nepra case officer said that “there would be a net increase of 15 paise per unit for consumers”, provided the regulator approved 71 paise per unit in refund demanded by Discos in November.

He explained that an 86 paise per unit negative FCA was applicable in October bills that would come to an end and be replaced by a 71 paise negative adjustment, thus a net increase of 15 paise per unit.

During the hearing, presided over by Nepra Chairman Waseem Mukhtar, the regulator’s technical member Rafique Sheikh inquired about the impact of lower FCAs and changes in consumption patterns on quarterly tariff adjustments (QTA) due next month. The case officer reported that quarterly adjustments were estimated to have increased tariff by Rs40-45bn, but clearance of some outstanding cases like nuclear power would almost nullify any increase.

The hearing was told that most of the factors assumed to allow higher reference tariffs were generally in line with estimates.

The electricity generation in September was reported to have fallen by 9.9pc against estimates of reference tariff, 6.4pc down year-on-year and 5.2pc less than in August. The first quarter (July-September) of this fiscal year also saw an 8pc reduction in generation compared to the same period a year ago.

The Central Power Purchasing Agency (CPPA) claimed more than Rs7.5bn in dues to sugar mills. However, some participants challenged the claim, saying the government was claiming to have reached an understanding with bagasse-based plants.

Therefore, these claims were unjustified. The Nepra chairman explained that such an agreement was not officially on paper and could only be considered upon the government’s formal request for tariff re-determination.

Mr Mukhtar also insisted that the closure of the Neelum-Jhelum Hydropower Project due to a tunnel collapse had no impact on consumers because it was on a ‘take and pay’ contract and the shutdown meant no payments.

However, he was reminded by commentators that its closure definitely had a negative financial impact on consumers because this led to the utilisation of expensive plants on LNG or coal, and the additional impact of past bagasse calculation based on imported coal also had a detrimental impact. Moreover, the consumers had been paying the Neelum-Jhelum surcharge for almost a decade to finance the project and its closure caused double jeopardy.

The CPPA had claimed that reference fuel cost stood at Rs9.8 per unit, but the actual average fuel cost amounted to Rs9.1 in September compared to Rs7.62 for the same month last year, showing an increase of almost 20pc.

It said that about 12,487 gigawatt-hours (GWh) of electricity was generated at an estimated fuel expenditure of Rs104bn (Rs8.34 per unit) in September, of which 12,118 GWh were delivered to Discos at a cost of Rs110.2bn (at Rs9.09 per unit).

Data showed a major fall in power consumption was apparently due to record tariffs and the shrinking purchasing power of the consumers. The consumption in September 2024 was almost 20pc lower than the same month (12,920Gwh) of last year. The fuel cost in September last year was reported at Rs7.62 per unit against Rs9.09 this year.

Hydropower, which has no fuel cost, accounted for the largest share of power generation at 39pc, slightly higher than last year’s 37.5pc. LNG-based power contributed 16.3pc of the supply, followed by nuclear at 13pc, down from 17pc in September 2023.

Coal-based generation contributed 19.3pc, with local coal making up 10.1pc and imported coal 9.2pc. This was followed by a 7.91pc contribution from local gas.

LNG-based power generation in September cost Rs24.96 per unit, while imported coal cost Rs16.6 per unit and local coal Rs12.29 per unit. Power generated from furnace oil was the most expensive at Rs30.3 per unit, though it made up just 0.3pc of the total supply.

Meanwhile, local gas-based power generation cost Rs13.67 per unit, and nuclear fuel remained the cheapest at Rs1.54 per unit. Renewable energy sources — wind, bagasse and solar — together contributed 4.3pc to the national grid. Wind and solar also have no fuel cost, while bagasse-based generation doubled in cost to Rs12.48 per unit, up from Rs6 per unit previously.

Electricity imports from Iran accounted for 0.3pc of the power supply at around Rs26 per unit.

The FCA, reviewed monthly, only applies to consumers’ bills for one month at a time. If approved, the lower FCA will not apply to domestic consumers using up to 300 units per month.

Under the national tariff mechanism, changes in fuel costs are passed on to consumers on a monthly basis, while quarterly tariff adjustments — accounting for variations in power purchase prices, capacity charges, variable operation and maintenance costs, use of system charges and impact of transmission and distribution losses — are built in the base tariff by the federal government.

DAWN NEWS

 

[Cricket Warrior]

61,540 arrested over power theft in Punjab

Punjab Police have launched a massive crackdown on power theft, resulting in the arrest of 61,540 individuals across the province, including Lahore, ARY News reported.

As per details, the police have registered 99,572 cases against power thieves, completed challans for 60,278 cases, and convicted 8,424 accused.

In Lahore alone, 32,057 individuals have been arrested, with 31,559 cases registered and 8,722 challans submitted.

This year, 53,323 accused have been arrested, with 91,264 cases registered and 58,067 case challans submitted.

Earlier, K-Electric (KE) and the Federal Investigation Agency (FIA) jointly conducted more than 13 operations aimed at curbing illegal power theft in Karachi and its surrounding regions falling within the company’s service territory spanning Sindh and Balochistan.

61,540 arrested over power theft in Punjab

LAHORE: Punjab Police have launched a massive crackdown on power theft, resulting in the arrest of 61,540 individuals across the province, including

arynews.tv

 

[Cricket Warrior]

Govt to increase gas prices for the fourth time in two years

Government of Pakistan is about to increase gas prices for domestic consumers for the fourth time in two years, ARY News reported on Monday.

According to the reports, the Oil & Gas Regulatory Authority (OGRA) will hold a hearing tomorrow in Lahore on the application submitted by Sui Northern Gas Pipelines Limited (SNGPL), while the hearing for Sui Southern Gas Company Limited (SSGC) request will be held on Nov 8 in Karachi.

Reports suggest that a request has been made to increase the gas prices by 3.66 percent (pc) for Punjab, Khyber Pakhtunkhwa, And Islamabad, and by 53.47pc for Sindh and Balochistan. SNGPL has proposed a hike of Rs. 64.16 per MMBtu, bringing its average price to Rs. 1,810.38 per MMBtu. Meanwhile, SSGC has requested an increase of Rs. 669.07 Per MMBtu, raising its average price to Rs. 1,920.39 Per MMBtu.

The gas companies have requested the price hike effective from July 1, 2024, meanwhile, sources report that domestic consumers have faced an additional burden of Rs.953 billion due to the rising gas prices.

Since Jan 2023, gas prices for domestic consumers have been increased three times, with a single hike under the previous coalition government and two increases during the short tenure of caretake government.

In total, more than Rs. 900 billion has been added to the burden on gas consumers for the past two years.

Govt to increase gas prices for the fourth time in two years

Government of Pakistan is about to increase gas prices for domestic consumers for the fourth time in two years, ARY News reported on Monday. According to

arynews.tv

 

[BouncerGuy]

40-paisa hike in K-Electric tariff for August usage notified

The National Electric Power Regulatory Authority (Nepra) on Tuesday notified a 40 paise per unit additional fuel cost adjustment (FCA) for K-Electric clients for power consumed in August.

The FCA would be applicable in consumer bills of January 2025 and provide about Rs675 million to KE, which had demanded a 51 paise hike to extract Rs853m.

This will replace a positive FCA of Rs3.04 per unit to be charged to consumers in December, previously approved by Nepra for electricity consumption in July. The Karachiites would pay a positive FCA of Rs3.17 per unit in November. Effectively, the consumer-end rate in January 2025 would be lower than in November and December.

The representatives of business, commercial and political communities based in Karachi had opposed the fresh FCA, saying it could affect business and commercial activities in the country’s largest metropolitan and port city at a disadvantage against the rest of the country. They are critical of both KE and Nepra for operating and allowing inefficient plants, respectively, resulting in KE’s fuel cost of Rs24 per unit in August compared to Rs8.8 per unit in the national grid.

They said Nepra had ordered KE to refrain from revenue-based loadshedding and restrict power cuts to pole-mounted transfers (PMTs) two years ago but had not been honoured by the utility.

Nepra noted in its order that KE also confirmed that it was still assessing the feasibility of PMT-based loadshedding.

Fuel charge adjustments are incurred by utilities due to global variations in fuel prices and changes in generation mix. The higher FCA, the notification said, would apply to all consumer categories except lifeline power consumers, prepaid metering consumers and electric vehicle charging stations (EVCS).

DAWN NEWS

 

[Cricket Warrior]

Electricity tariff set to rise nationwide

The National Electric Power Regulatory Authority (NEPRA) has been advised to increase electricity power tariff across the country, ARY News reported.

According to details, preparations are underway to increase electricity prices across the country, including Karachi, as part of the quarterly adjustment. This hike is expected to place an additional burden of Rs. 8.73 billion on consumers already facing high utility costs.

A request has been submitted to NEPRA seeking to impose an additional burden of Rs. 8.72 billion on electricity consumers. This adjustment pertains to the first quarter of the current fiscal year and aims to address rising energy costs. NEPRA will hold a hearing on 20 Nov regarding this proposal.

Electricity tariff set to rise nationwide

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has been advised to increase electricity power tariff across the country, ARY News

arynews.tv

 

[Cricket Warrior]

Electricity prices likely to slash by Rs8 per unit

Electricity prices likely to be reduced by up to Rs8 per unit for three months under the proposed winter package.

According to sources, the winter plan aims to offer relief to consumers by encouraging increased electricity consumption.

The Power Division, Ministry of Finance, and other departments are working together on the details of the winter package.

The winter package is expected to bring down electricity prices by up to Rs8 per unit for a three-month period. However, the final approval of the package is contingent upon approval from the International Monetary Fund (IMF).

Three different proposals are under consideration for the price reduction during the winter months.

One proposal suggests providing relief to all electricity consumers, while another suggests limiting relief to industrial consumers in order to boost consumption. In the case of relief being extended solely to industrial consumers, a price reduction of up to 20 rupees per unit is expected.

The first proposal recommends a 3-month period from December to February 2025 for the winter package. A second proposal considers extending the duration to December through April.

Sources also mentioned that the preference will be to grant relief to industrial consumers under the winter package. Officials from the Ministry of Finance have already engaged in discussions with the IMF regarding the package. A formal report has also been submitted to address questions raised by the IMF.

The final decision on the package, which involves reducing production costs and increasing electricity demand, is expected soon. Should the IMF approve, the proposal will be sent to the National Electric Power Regulatory Authority (NEPRA) for approval. Once NEPRA grants approval, the federal cabinet will issue the final approval for the winter package.

Earlier, the National Electric Power Regulatory Authority (NEPRA) jacked up electricity rates for Karachi by Rs0.40 per unit.

Proposed winter package may slash electricity rates by 8 rupees | The Express Tribune

The winter package, proposing an 8-rupee electricity price cut, awaits final approval from the IMF for implementation.

tribune.com.pk

 

[FearlessRoar]

LPG prices jacked up in Pakistan
As per details, the new price of LPG has been set at Rs 254.30 per kilogram for December.

The price of a domestic LPG cylinder has been fixed at Rs 3,079.79, up from Rs 2,999.47 in November. The increase in LPG prices is attributed to the rise in the value of the US dollar.

OGRA has issued a notification announcing the new prices, which will come into effect from December 1. This price hike is expected to put an additional burden on consumers, who are already struggling with rising inflation and fuel prices.

On September 30, the Oil and Gas Regulatory Authority (OGRA) notified a hike in the price of liquefied petroleum gas (LPG) by Rs 7.31 per kilogram (kg) for October.

According to a notification issued by the OGRA, the new price for LPG now stands at Rs 250.31 per kg.

After the recent increase, the cost of an 11.8 kg domestic cylinder has risen by Rs 86.28. The new price for a domestic LPG cylinder of 11.8 kg is fixed at Rs 2965.38.

The revised prices will be in effect from October, as per the notification issued by OGRA.

LPG prices jacked up in Pakistan

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has announced an increase in the prices of Liquefied Petroleum Gas (LPG) in Pakistan, ARY News

arynews.tv

 

[BouncerGuy]

Nepra allows 20 paise per unit hike for December

The National Electric Power Regulatory Authority (Nepra) on Thursday allowed about 20 paise per unit increase in electricity rates nationwide, including for K-Electric, for the month of December on account of quarterly adjustment (QTA) for the first quarter (July-September) of the current fiscal year.

Nepra “has decided to allow positive quarterly adjustments of Rs1.187bn pertaining to the 1st quarter of FY25, in a period of one month i.e. December 2024, at a uniform rate of Rs0.1957/kWh, to be applicable to all consumer categories, except lifeline consumers and prepaid consumers”, the regulator said in its order.

In a separate statement that is not part of tariff determination, Nepra claimed that electricity tariff in December would actually be Rs1.54 per unit cheaper than the existing tariff in view of the fact that an existing quarterly adjustment of Rs1.74 per unit for the 4th quarter of 2023-24 had expired in November and would be replaced by a 20-paisa QTA in December.

Ex-Wapda distribution companies (Discos) had sought an additional quarterly tariff adjustment of about Rs6.4 billion for July-September of the current fiscal year that worked out an increase of about 36 paise per unit for three months.

Subsequent modifications by Discos and calculations by the regulator, however, worked out total additional QTA of about Rs1.187bn, translating into about seven paise per unit for three months.

Nepra decided to apply the combined impact of three-month increase into 20 paise per unit in one month i.e. December.

It said the quarterly adjustment of Rs0.1957/kWh shall also be charged from the consumers of K-Electric, except lifeline and prepaid consumers, to be recovered in a period of one month i.e. December 2024.

DAWN NEWS

 

[BouncerGuy]

Nepra announces ‘double relief’ for power consumers

The National Electric Power Regulatory Authority (Nepra) claimed to have cleared a rare double dose of relief for electricity consumers on Friday, including a negative monthly fuel cost adjustment (FCA) of Rs1.14 per unit for December and discounts of Rs6-23 per unit on 25 per cent incremental power consumption for three winter months.

In two separate orders, Nepra, on the advice of the government, also extended the winter relief package on incremental consumption to K-Electric customers, solar net-metered consumers and large wheeling industrial consumers.

Nepra’s first order confirmed a “National Average Uniform decrease of Rs1.1445 per kWh” in the applicable tariff for power distribution companies (Discos) for electricity consumed in October 2024, to be reflected in December bills. However, as the Rs1.28 per unit negative FCA applied in November expires, the actual relief will be about 14 paise per unit lower in December.

In a dissenting note, Nepra’s tariff member Mathar Niaz Rana questioned payments of about Rs1.7bn to sugar mills against controversial past adjustments. He argued that consumers could have received a Rs1.32 per unit negative FCA — a relief of another four paise compared to November’s rates — if the payment had been deferred.

He noted that sugar mills had reduced the rates for their power supply to Discos through government-led negotiations; therefore, the previous higher rate should have been deferred.

The Central Power Purchasing Agency (CPPA), on behalf of Discos, had sought Rs1.02 per unit negative FCA for the electricity consumed in October, claiming that it had charged Rs10.275 per unit FCA in October in advance but its fuel cost amounted to Rs9.25 per unit. Nepra worked out the actual fuel cost at Rs9.13 per unit, thus a negative FCA of Rs1.14 per unit.

In its second judgement, Nepra approved the winter demand initiative offered by the government on 25pc incremental consumption to both K-Electric and Discos. It also extended its application to solar net-metered and industrial consumers with the consent of the government on the demand of the industrial sector.

It said that, unlike in the past, K-Electric would ensure the winter package reached its consumers, and any loss in terms of actual units would be covered by the government, like other Discos.

It said the winter initiative will apply to all eligible industrial, commercial, general service and domestic (Time of Use and non-ToU consumers exceeding 200 units) consumers of Discos and K-Electric.

The government introduced cheaper electricity rates on marginal cost (no-profit, no-loss or subsidy-neutral) to residential, commercial and industrial consumers on incremental usage with a 25pc cap.

The package applies to incremental consumption over the past years and entails an 18-50pc discount depending on various consumer categories and consumption slabs.

The additional consumption would be worked out under a formula based on the last three years’ billed units. For this, historical consumption for the last three years will be higher than last year’s consumption or average weighted consumption on a rolling basis, with 50pc weight to FY2024, 30pc to FY2023 and 25pc to FY2022.

At present, the base rate for domestic consumers, according to the power division, is a minimum of Rs37.49 per unit and a maximum of Rs52.07, but additional consumption will be charged at Rs26.07 per unit for both categories.

This would be 30pc (Rs11.42 per) cheaper compared to the minimum rate of Rs37.49, and 50pc (Rs26 per unit) cheaper compared to the maximum rate.

The base rate for commercial consumers currently ranges between Rs39.53 and Rs48.78 per unit. They will also be charged a flat rate of Rs26.07 per unit on incremental consumption. The discount on additional consumption for this category will be Rs13.46 to Rs22.71 per unit, or 34pc to 47pc cheaper.

The base rate for industrial consumers stands at Rs31.79 to Rs41.12 per unit. They will also be charged Rs26 per unit on incremental units. Their discount will thus range between Rs5.72 to Rs15.05 per unit — cheaper by 18pc to 37pc compared to base rates.

DAWN NEWS

 

[Cricket Warrior]

OGRA approves major increase in gas prices across Pakistan

The Oil and Gas Regulatory Authority (OGRA) has approved significant hikes in gas prices, affecting consumers nationwide, ARY News reported.

According to reports, the decision, sent to the federal government for final approval, will see an average increase of 25.78 percent (pc) for consumers in Sindh and Balochistan, while consumers in Islamabad, Punjab, and Khyber Pakhtunkhwa will experience an 8.71pc rise.

Under the new tariff structure, the average gas price for Sui Southern Gas Company (SSGC) has been set at Rs1,762.51 per MMBTU, and for Sui Northern Gas Pipelines Limited (SNGPL), it’s Rs1,778.35 per MMBTU. These changes aim to address financial needs totalling Rs527.55 billion for SNGPL and Rs319.78 billion for SSGC, along with adjustments for prior receivables.

The companies had originally sought increases in gas prices as high as 208.67pc but were met with public hearings by OGRA last month. OGRA’s decision to forward the recommendations to the federal government for final approval means that a notification will be issued once the government grants its consent.

This revision in gas prices comes amidst rising financial pressures on the gas companies, with SNGPL receiving approval to recover over Rs50 billion from previous adjustments, and SSGC allowed to recover Rs48.85 billion.

OGRA approves major increase in gas prices across Pakistan

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has approved significant hikes in gas prices, affecting consumers nationwide, ARY News reported.

arynews.tv

 

[Cricket Warrior]

Government plans Rs12 per unit cut in electricity tariffs by March

The government is considering a significant reduction in electricity tariffs by Rs12 per unit to ease the financial burden on consumers amid rising costs of essential commodities. The reduction is expected to be implemented by March 2025.

This initiative involves renegotiating contracts with private Independent Power Producers (IPPs), government power plants (GPPs), and renewable energy sources, including wind and solar power plants. The revised agreements could result in annual savings of up to Rs300 billion.

In the first phase, contracts with five IPPs, including Hubco Power, Rousch Power, AES Lalpir Power, Saba Power, and Atlas Power, were canceled. Additionally, the government terminated the agreement with Pakgen Power Limited, a 365 MW IPP.

The reduction will be achieved in three key steps. Negotiations with IPPs, GPPs, and renewable energy sources will contribute Rs3 per unit. Another Rs4 per unit reduction will be realized through debt re-profiling. Lastly, the government plans to slash Rs5 per unit by eliminating taxes on electricity bills.

Although this move will cause a revenue shortfall, sources indicate the deficit will be compensated through other economic sectors. If successful, this strategy could bring much-needed relief to tax-burdened citizens and stimulate economic growth.

Government plans Rs12 per unit cut in electricity tariffs by March

The government is considering a significant reduction in electricity tariffs by Rs12 per unit to ease the financial burden on consumers amid

www.bolnews.com

 

[BouncerGuy]

Ogra notifies 2.7pc cut in RLNG prices for December

With system losses touching a record 16.16 per cent, the Oil and Gas Regulatory Authority (Ogra) on Friday notified up to 2.7pc reduction in the sale price of Regasified Liquified Natural Gas (RLNG) for two Sui gas companies — SSGCL and SNGPL — for the current month.

Through a belated notification, Ogra approved an increase in unaccounted-for gas (UFG) loss for SSGCL from 13 to 16.16pc and from 8pc to 8.6pc for SNGPL.

While the regulator did not explain its approval for allowing higher UFG losses for both companies, the RLNG consumers would be paying up to 16pc higher charges than the gas they actually receive.

According to notification, the RLNG’s sale price for Lahore-based Sui Northern Gas Pipelines Limited (SNGPL) at the transmission stage has been reduced by 3.26pc to 11.966 per million British thermal unit (mmBtu) against $12.37 per mmBtu in November.

The sale price at the distribution stage for SNGPL was cut by 2.72pc to $12.90 per mmBtu for December from $13.26 per unit in November.

Likewise, the RLNG sale price for Karachi-based Sui Southern Gas Company Ltd has been slashed at the transmission stage by 6pc to $10.54 per mmBtu against $11.22 last month. The sale price at the distribution stage for the company was decreased by just 1.99pc to $12.54 per mmBtu for December against $12.8 last month. The significant difference between transmission and distribution is mainly due to high losses during distribution.

The overall reduction in absolute terms for SSGC’s transmission price amounted to $0.675 per mmBtu and $0.255 per unit at the distribution point. The decrease in RLNG price for SNGPL at transmission stood at $0.40 per mmBtu and $0.36 per unit for distribution.

Ironically, the RLNG distribution prices of $12.54 and $12.90 per mmBtu for SSGCL and SNGPL are almost $3.97 and $3.6 higher than Pakistan State Oil’s $8.93 per mmBtu average delivered price ex-ship (DES), respectively. This is mainly because both the LNG importers — PSO and Pakistan LNG Ltd (PLL) — and port authorities also charge profit margins on account of retainage and margins at the rate of 3.15pc and 3.1pc of DES price, respectively, on top of 10.13pc losses of SNGPL and 16.16pc losses of SSGCL.

The basket RLNG price was based on 12 cargoes for December. These included 10 cargoes under the two LNG contracts between PSO and Qatar Gas at an average of $8.93 per mmBtu — four cargoes at $7.5 and six cargoes at $9.87 per mmBtu. Another cargo imported by PLL was delivered ex-ship at $8.966 per mmBtu. The average price for 10 PSO cargoes stood lower than that of PLL.

Ogra said it had decreased the prices in line with policy guidelines issued by the federal government through the Ministry of Energy.

DAWN NEWS