Power consumers poised to get Rs1.03 relief
Listen to article
ISLAMABAD:
Power consumers are set to receive a relief of Rs1.03 per unit on account of fuel cost adjustment for the month of December 2024.
At the same time, it has been revealed that the closure of 969-megawatt Neelum-Jhelum hydropower plant for months is hitting the consumers as they have not been provided cheap electricity from the plant.
A government official revealed this at a public hearing held by the National Electric Power Regulatory Authority (Nepra) to consider a petition of Central Power Purchasing Agency-Guarantee (CPPA-G), which sought approval for a reduction of Rs1.03 per unit in electricity prices under fuel cost adjustment for December.
If Nepra approves the release of refund, it can provide some financial relief to electricity consumers in February. However, the tariff adjustment will not apply to lifeline consumers, electric vehicle charging stations and K-Electric customers.
According to CPPA-G, the positive impact of winter package is being felt, with electricity prices being lower due to seasonal measures. However, it also highlighted the negative impact of non-functioning of the Neelum-Jhelum hydropower project.
CPPA-G officials stated had the project been operational, electricity prices could have been even lower.
Another issue raised during the hearing was the non-operation of 747MW Guddu power plant. CPPA-G was questioned as to why the plant was not running, which contributed to a rise in electricity costs. The agency did not give a clear response.
Electricity consumers expressed concern and called for taking further steps to reduce electricity prices. A consumer pointed out that system's inefficiency was exacerbated by weather conditions, adding that "when it rains, lines go down, and when it's hot, lines go down."
According to data submitted by CPPA-G, in December 2024, nuclear energy provided 2,065 gigawatt hours (GWh), or 26.48% of total electricity generation.
It was followed by hydroelectric power that produced 22.8% at zero cost and re-gasified liquefied natural gas (RLNG)-based power plants, which contributed 20.7% of electricity.
As the cost of fossil fuel sources, such as natural gas and local coal, stays higher, nuclear power remains a cornerstone of Pakistan's energy strategy due to its lower cost and environmental benefits.
In January too, nuclear energy generation was the top source, contributing 20.78%, or 1,728 GWh, to the grid. The milestone was first achieved in December 2022, when nuclear power contributed more than 27% (2,284.8 GWh) to the country's energy mix.
In December 2024, nuclear power comprised 26.48% of the energy mix, outpacing hydroelectric power and RLNG-based electricity.
Earlier this month, Nepra also announced a reduction in electricity tariff of up to 75 paisa per unit for consumers of ex-Wapda distribution companies (DISCOs) and K-Electric on account of fuel charges adjustment.
The regulator cut tariff up to Rs0.7556 per unit for DISCOs due to variations in fuel charges in November 2024. For K-Electric consumers, it slashed power price by Rs0.4919 per kilowatt-hour (kWh) for October 2024. The reimbursement was due to be made in electricity bills for January 2025.
Discussing a tariff application of DISCOs, the regulator said that National Transmission and Despatch Company (NTDC) reported provisional transmission and transformation (T&T) losses of 244.158 GWh, equivalent to 2.946%, based on energy delivered to NTDC system during November 2024.
Additionally, NTDC reported T&T losses of 19.528 GWh, or 3.391%, for Pak Matiari-Lahore Transmission Company's (PMLTC) high-voltage, direct-current line.
NTDC is allowed T&T losses of 2.639% at 500-kilovolt and 220kV levels. For PMLTC, the permitted T&T losses are up to 4.3%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Pakistan rejects Modi's misleading remarks
Modi likely to skip G-7 summit in Canada amid cold war between two countries. PHOTO: FILE Listen to article Pakistan firmly rejected the baseless and misleading remarks made by Indian Prime Minister Narendra Modi regarding the situation in Indian Illegally Occupied Jammu and Kashmir (IIOJK), and making hollow claims of development in the disputed territory. In a statement, Foreign Office spokesperson stated that such statements represented a deliberate attempt to deflect international attention from the grave and persistent human rights violations being committed in a territory under foreign occupation. The Foreign Office statement came after Modi made his first visit to IIOJK since the April 22 Pahalgam attack triggered a four-day war between the two nuclear-armed countries. During the visit, Modi launched a string of development projects for the disputed territory. "We are deeply dismayed that the Indian Prime Minister has once again chosen to accuse Pakistan of involvement in the Pahalgam attack, without presenting a single piece of credible evidence," the Foreign Office statement said. "Jammu and Kashmir remains an internationally recognised disputed territory, the final status of which is to be determined in accordance with the relevant United Nations Security Council resolutions and the will of the Kashmiri people. No amount of rhetoric can change this legal and historical reality," it added. "Claims of development in IIOJK ring hollow against the backdrop of an unprecedented military presence, suppression of fundamental freedoms, arbitrary arrests, and a concerted effort to alter the region's demography in violation of international law, including the Fourth Geneva Convention." The Foreign Office reiterated that Pakistan remained steadfast in its principled support for the people of Jammu and Kashmir in their just struggle for their rights and dignity. It urged the international community to hold India accountable for its reign of oppression in IIOJK.
Express Tribune
3 hours ago
- Express Tribune
P&G to cut 7,000 jobs, exit brands
Listen to article Procter & Gamble will cut 7,000 jobs over the next two years as the Tide detergent maker contends with an uncertain spending environment, fuelled in part by US tariffs that have roiled numerous consumer companies. The world's largest consumer goods company also plans to exit some product categories and brands in certain markets, including some potential divestitures, as part of the broader two-year restructuring plan. "This is not a new approach, rather an intentional acceleration of the current strategy ... to win in the increasingly challenging environment in which we compete," executives said at a Deutsche Bank Consumer Conference in Paris on Thursday. The job cuts amount to about 6% of its workforce, which P&G characterised as part of its ongoing strategy. Notably, CFO Andre Schulten and operations head Shailesh Jejurikar said at the conference that the geopolitical environment was "unpredictable" and that consumers were facing "greater uncertainty." President Donald Trump's sweeping levies on trading partners have shaken global markets and sparked concerns of a recession in the United States. P&G on Thursday estimated about a $600 million before-tax hit in its fiscal year 2026, based on current tariff rates. The rates have frequently changed over the past few months. Overall, the trade war has cost companies at least $34 billion in lost sales and higher costs, a Reuters' analysis showed.
Business Recorder
4 hours ago
- Business Recorder
Punjab power relief funded by profits of two power companies
LAHORE: After the reduction in electricity tariffs of two power companies - Quaid-e-Azam Thermal Power Private Limited and the Punjab Thermal Power Private Limited - there will be cut in power tariff for the consumers but its impact would not be too significant, it has been learnt. 'There will be definitely reduction in power tariff of electricity consumers in Punjab and the relief will be financed with profits earned by said two government-owned power companies,' sources in the energy department said, adding: 'In light of the Punjab cabinet decision, the provincial government would approach Nepra for a reduction in power tariffs for these two plants so that these price reductions get permanence and are reflected in the new tariff.' It may be noted that the Punjab government had established a special purpose vehicle company by the name of Quaid-e-Azam Thermal Power (Pvt) Limited (QATPL) in March 2015 under section 32 of the Companies Ordinance 1984 in Independent Power Producer (IPP) mode with the mandate to build, own and operate a 1180 MW RLNG based power plant at Bhikki, Shiekhupura on fast track. Punjab CM announces up to 40pc relief in power tariffs The Punjab Thermal Power (Private) Limited (PTPL) is a private limited company incorporated under the Companies Act, 2017. It is wholly owned by the government of Punjab through the energy department. The main objective of the company is to establish and operate a 1263 MW thermal power plant based on RLNG at Haveli Bahadur Shah near Trimmu Barrage, District Jhang in Punjab. It may be recalled that the provincial cabinet in its meeting had given nod to cut the power tariffs of these two plants by 30-40 per cent to reduce electricity bills. This move is similar to the federal government's which recently renegotiated contracts with independent power plants (IPPs) to reduce tariffs, the sources added. 'Both the companies had curtailed its profits as well as reduced non-developmental expenditures to materialize this move.' Copyright Business Recorder, 2025
