Consumers brace for Rs1.27-per-unit hike
Listen to article
Electricity consumers are set to face a tariff increase of up to Rs1.27 per unit on account of fuel cost adjustment for April 2025 as prices of fuels used in power generation increased.
The Central Power Purchasing Agency-Guarantee (CPPA-G) has submitted a petition to the National Electric Power Regulatory Authority (Nepra), seeking an increase of Rs1.27 per unit in electricity tariff under the monthly fuel charges adjustment mechanism. If approved, the tariff hike will put a total burden of Rs13 billion on consumers. The regulator will hold a public hearing on May 29.
According to data submitted to Nepra, hydel generation rose 11.4% to 2,306 gigawatt hours (GWh) in April 2025 as compared to 2,070 GWh in April 2024. Power generation by local coal-fired plants stood at 1,525 GWh, which constituted 14.51% of total production at a price of Rs11.2115 per unit against generation of 881 GWh in April 2024 at Rs15.2284 per unit. It showed a hike of 73% in local coal-based electricity production.
By consuming imported coal, power plants produced 1,054 GWh at Rs16.6062 per unit, accounting for 10.02% of total production. In April last year, only 21 GWh had been produced at a price of Rs22.8405 per unit.
Power generation through the residual fuel oil totaled only 83 GWh at Rs28.7679 per unit. Electricity generation by gas-based plants hit 842 GWh, constituting 8.01% of total production at Rs11.8166 per unit. In comparison, 975 GWh had been produced in April 2024 at a price of Rs13.2535 per unit.
Re-gasified liquefied natural gas (RLNG)-based power plants produced 2,157 GWh, having a 20.52% share in total generation at Rs24.2632 per unit. Electricity generation from nuclear sources was 1,882 GWh at Rs2.1038 per unit, contributing 17.91% to total generation, against the production of 2,043 GWh in April 2024, which exhibited a decrease of 7.9%.
Electricity import from Iran came in at 32 GWh at Rs25.3465 per unit while power generation from bagasse was recorded at 37 GWh at a price of Rs5.9822 per unit.
Wind mills produced 478 GWh of electricity, accounting for 4.55% of total generation, while solar panels produced 115 GWh, which contributed 1.10% to total generation.
Total energy generation reached 10,513 GWh in April 2025 as compared to 8,639 GWh in April 2024, showing an increase of 22.9% at a basket price of Rs9.9197 per unit. The total cost of energy was calculated at Rs104.288 billion. However, with the proposed previous negative adjustment of Rs11.397 billion and the sale of IPPs' electricity at negative Rs1.648 billion, the net electricity delivered to distribution companies (DISCOs) stood at 10,196 GWh at Rs8.9488 per unit with the total price of Rs91.243 billion.
The electricity supply of 10,196 GWh was 21.7% higher than the net 8,375 GWh delivered in the corresponding month of 2024.
In its petition, the CPPA-G argued that since the reference fuel cost was Rs7.6803 per unit for April 2025, a positive adjustment of Rs1.2685 per unit should be approved as actual fuel charges came in at Rs8.9488 per unit.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
14 hours ago
- Express Tribune
Nepra allows relief for Karachi, raises tariff for the rest
The National Electric Power Regulatory Authority (Nepra) on Thursday issued two separate notifications, reducing the power tariff by Rs2.99 per unit for the consumers in Karachi, while increasing the rate by Rs0.93 per unit for the rest of the country. The changes in the tariff had been done on account of fuel adjustment for the month of March in case of Karachi and for the month of April for other parts of the country. In any case, the new changes would be reflected in the current month's electricity bills. According to one notification pertaining to the tariff of the K-Electric, the authority "decided to allow a negative FCA of Rs2.9898/kWh (negative Rs4.045 billion) for March 2025, to be passed on to the consumers in the billing month of June 2025". Nepra said the negative FCA would apply to "all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS) and prepaid electricity consumers of all categories who opted for pre-paid tariff". It said that the KE would reflect the fuel charges adjustment in respect of March in the billing month of June. "The adjustment would be shown separately in the consumers' bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains," it added. According to a separate notification, the authority "has reviewed and assessed a National Average Uniform increase of Rs0.9306/kWh in the applicable tariff for Discos [Distribution Companies] on account of variations in the fuel charges for April". The notification added that the FCA should apply to all the consumer categories except lifeline consumers, protected consumers, EVCS and pre-paid electricity consumers of all categories who opted for prepaid tariffs. (WITH INPUT FROM NEWS DESK)
Business Recorder
16 hours ago
- Business Recorder
Nepra hearing on 13th: Interim tariffs for 8 Discos to take centre stage
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) is all set to hold a public hearing on June 13, 2025 for distribution and supply interim tariffs of eight power Distribution Companies (Discos) for FY 2025-26 under Multi-Year Tariff (MYT) regime in which the companies have sought revenue requirement of over Rs 455.6 billion. The eight Discos, GEPCO, QESCO, MEPCO, SEPCO, HESCO, PESCO, TESCO and HAZECO have filed their distribution and supply tariff petitions under MYT regime for five years' period from FY 20225-26 to FY 2029-30. According to the tariff petition, GEPCO has sought approval of revenue requirement of Rs 67.821 billion of which Rs 16.598 billion is on account of pay & and allowances, Rs 13.815 billion post-retirement benefits, other expenses Rs 4.909 billion (total O&M cost Rs 43.446 billion) , depreciation Rs 4.792 billion, RORB Rs 8.750 billion and other income negative Rs 5.418 billion other income and Prior Year Adjustment (PYA) Rs 24.375 billion. QTA & MTA: Nepra cuts tariffs for Discos and KE MEPCO has sought NEPRA's approval for revenue requirement of Rs 139.106 billion of which, pay and allowances are Rs 22.302 billion, post-retirement benefits Rs 29.384 billion, repair and maintenance, Rs 7.869 billion, travelling allowance Rs 1.936 billion, vehicles maintenance, Rs 1.161 billion, other expenses Rs 507 million (total O&M cost Rs 79.653 billion), depreciation Rs 4.792 billion, RORB Rs 8.750 billion, other income negative Rs 8.731 billion and Prior Year Adjustment Rs 79.453 billion. QESCO's total proposed revenue requirement for FY 2025-26 is Rs 50.120 billion which includes, pay and allowances Rs 9.947 billion, post-retirement benefits, Rs 3.044 billion, repair and maintenance, Rs1.496 billion, traveling allowance, Rs 1.936 billion, vehicles maintenance, Rs 797 billion, other expenses Rs 1.356 billion, (total) O&M cost Rs 17.100 billion), depreciation, Rs 2.944 billion, RORB Rs 15.696 billion, other income negative Rs 1.950 billion and PYA Rs 16.298 billion. SEPCO has sought total revenue requirement of Rs 58.053 billion, of which O&M cost is Rs 22.226 billion, Distribution Margin/Supply Margin, Rs 25.3032 billion, PYA Rs 25.522 billion. TESCO's revenue requirement for FY 2025-26 is estimated to be Rs 7.303 billion of which Rs O& M expense is Rs3.883 billion and DM/SM Rs 5.629 billion. PESCO: - Total revenue requirement for FY 2025-26 Rs 81.449 billion which includes O&M expense Rs 37 billion, DM/ SM- Rs 52 billion and PYA Rs 29.344 billion. HESCO's total revenue requirement for FY 2205-26 is Rs 39.448 billion of which O& M expense is Rs 25.130 billion, DM/SM Rs 33.693 billion and PYA Rs 5.755 billion. HESCO's total revenue requirement is Rs 12.320 billion for the FY 2025-26, which includes O&M Rs 7.883 billion, depreciation, Rs 831 million, RORB Rs 3.028 billion, advance tax Rs 1.129 billion and other income negative Rs 550 million. Copyright Business Recorder, 2025
Business Recorder
16 hours ago
- Business Recorder
Nepra allows partial claims in response to KE write-off petition
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has issued its decision on K-Electric's write-off petition, allowing partial claims of PKR 50 billion against the company's claims worth PKR 76 billion pertaining to the Multi-Year Tariff (MYT) control period spanning FY17-23. The power utility company had revised claims of unrecoverable amount of Rs 76.034 billion in receivables spanning seven years (2017–23) from Rs 67.902 billion pertains to the period prior to 2022 by including Rs 8.131 billion additional write-off claims for 2023. According to KE, it is important to highlight that the consumers were not paving overdue balances despite efforts and the settlement scheme/conversion of hook connection to metered connection given to incentive consumers, which was necessary for recovery of long outstanding dues from the defaulted consumers and/or to make them regular payers. If the Company had not offered settlement scheme/conversion of hook connection to metered connection to the defaulted consumers, these consumers would have continued to consume electricity without payment of dues hence, resulting in further accumulation of dues. In that case the amount claimed or write-off would have been higher than the amount of write-off currently being c aimed by the Company. Moreover, in case of correction of bills/detection billing, the amounts and units billed to consumers are reversed in system and are recorded as reversal of revenue. KE claimed Rs. 15.211 billion including GST for metered connections on account of settlement schemes out of the current MYT billing. According to KE, initially these connections were disconnected but reconnected after settlement schemes/consumer agreeing to convert to metered connections as per the categories of write off claims verified by the Auditors. This includes consumers in Payment Loyalty Reward (PLR) Schemes, overdue debts on account of consumption through single bulk connection and settlement schemes and consumers agreeing to convert hook connections to metered connections. According to K-Electric CEO Moonis Alvi, 'with this decision, majority of items pending to the previous control period have come to a close. KE looks forward to the MYT for the control period spanning FY 24 to FY 30, committed to meeting its serviced territory's energy needs.' The decision was released after public hearings and extensive deliberations that allowed all stakeholders to voice their concerns that were addressed by KE management. The submissions to Nepra underwent strict internal scrutiny as well as external verification by well-accredited and renowned audit firms as required by the Nepra in line with KE MYT 2017-2023. 'These costs were part of the Multi-Year Tariff awarded to the utility for the period 2017-2023, and have been approved after stringent benchmarks, audits and fulfillment of conditions laid down by Nepra in its tariff determination,' said Muhammad Aamir Ghaziani, Chief Financial Officer at KE. Arif Bilwani, Munem Zafar, Ameer Jamaat-e-Islami ,Rehan Javed and some other consumers had challenged the write-off claims of KE. Majority of the stakeholders objected to the additional and pending write off claims. The representative of JI raised the issue of bogus bills which are subsequently claimed as write off and referred his letters of May27, 2024 and January 3, 2025. Arif Bilwani also raised similar concerns regarding bogus billing. Bilwani also highlighted that there is a substantial increase in the write off claims in later years of the MYT as compared to the initial years. KE clarified that the reason for such increase is the increase in sales revenue. For example, sales revenues of private consumers increase from Rs. 169 billion in FY 2017 to Rs. 411 billion in FY 2023, thereby more write offs in FY 2023 as compared to FY 2017. On the other hand Shahid Khaqan Abbasi, ex-Prime Minister and former head of Task Force on KE issues, Omar, Junaid Ameen, Areeba Shahid and Bilal Asghar supported the claim of KE. NERPA further stated that it is 'conscious of the fact that all possible efforts have already been made by K-Electric, as confirmed by the auditors. Copyright Business Recorder, 2025
