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Express Tribune
4 days ago
- Business
- Express Tribune
NEPRA likely to cut power tariff by Rs0.65/unit for June
Listen to article Consumers are likely to receive relief in their electricity bills through a fuel charges adjustment for June 2025. This is due to a drop in energy prices used for power generation. NEPRA may reduce the power tariff by Rs0.6541 per kWh under the monthly FCA. It has scheduled a public hearing on July 30, 2025, regarding the proposed FCA for XWDISCOs. According to the CPPA-G, NEPRA has been requested to approve a reduction of Rs0.6541/kWh in fuel charges. The reference fuel cost was Rs8.3341/kWh, but actual costs came in lower due to cheaper fuel inputs. In June 2025, 13,744 GWh of electricity was generated. Hydropower led the mix with a 39.36% share, followed by RLNG (16.12%), local coal (10.99%), imported coal (10.16%), and nuclear (10.06%). The highest-cost power source remained imports from Iran at Rs22.5155/kWh. After transmission losses of 2.97% and adjustments, 13,310 GWh were delivered to DISCOs at an average cost of Rs7.6800/kWh.
Business Recorder
4 days ago
- Business
- Business Recorder
June FCA: CPPA-G seeks 65 paisa negative adjustment
ISLAMABAD: The Central Power Purchasing Agency–Guaranteed (CPPA-G) has sought negative adjustment of paisa 65 per unit in FCA for June 2025 to refund Rs 8.7 billion for consumers across the board. The Nepra is scheduled to hold a public hearing on July 30, 2025 to seek further explanation from CPPA-G and give opportunity to consumers' representatives to express their views on FCA adjustment data. According to data submitted to Nepra, in June 2025 hydel generation was recorded at 5,410 GWh - 39.36 percent of percent total generation. PD blocks Rs4.69/unit FCA relief Power generation from local coal-fired power plants was 1,510 GWh in June 2025 which was 10.99 per cent percent of total generation at a price of Rs 1.5121 per unit whereas 1,597 GWh was generated from imported coal at Rs 15.1600 per unit (percent). Generation from HSD whereas 151 GWh were produced on RFO at a rate of 28.8873 per unit. Electricity generation from gas-based power plants was 968 GWh (7.04 percent) at Rs12.3883 per unit. Generation from RLNG was 2,216 GWh (16.12 percent of total generation) at Rs 21.8716 per unit. Electricity generation from nuclear sources was 1,383 GWh at Rs 2.4488 per unit (10.06 percent of total generation), and electricity imported from Iran was 47 GWh at Rs 22.5153 per unit. Power generation from baggasse recorded at 35 GWh at a price calculated at Rs 9.8651 per unit. Generation from solar was recorded at 106 GWh which constituted 0.77 per cent of total generation. Energy generation from wind was recorded at 522 GWh (3.80 per cent) of total generation. According to the CPPA-G, energy generated in June 2025 stood at 13,744 GWh at a total price of Rs 108.166 billion which was Rs 7.8698 per unit. However, after inclusion of Rs 4.832 billion of previous negative adjustments and Rs 1.113 billion negative adjustment as sale to IPPs and transmission losses of negative 409 GWh (- Rs 2.97 per unit, the net delivered to Discos was recorded at 13,310 GWh at a rate of Rs 7.6800 per unit. The CPPA-G argued that since the generation cost in June 2025 was recorded at 7.6800/kWh against the reference rate of Rs 8.334/kWh, hence a negative adjustment of Rs 0.6541/kWh for all categories of consumers should be approved. Copyright Business Recorder, 2025
Business Recorder
7 days ago
- Business
- Business Recorder
Payments to Chinese IPPs: PQEPC seeks help of Aurangzeb
ISLAMABAD: Port Qasim Electric Power Company Private Limited (PQEPC) has formally approached Finance Minister Senator Muhammad Aurangzeb, seeking urgent release of funds to the Central Power Purchasing Agency–Guaranteed (CPPA-G) for onward payment to Chinese Independent Power Producers (IPPs). Currently, the outstanding dues owed to Chinese IPPs stand at approximately Rs 480 billion. A portion of this amount is expected to be paid before Prime Minister Shehbaz Sharif's upcoming visit to Beijing, as a gesture to reassure Chinese stakeholders. In a letter to the finance minister, PQEPC's Chief Executive Officer, Wang Dongfang, emphasised that the 1,320 MW Port Qasim Coal-Fired Power Project—developed under the China-Pakistan Economic Corridor (CPEC)—has consistently supplied clean, reliable, and cost-effective electricity to the national grid, even during the COVID-19 pandemic. Chinese IPPs face Rs500bn in unpaid dues He noted the project's active contribution toward mitigating circular debt. According to Wang, the total outstanding dues for the Port Qasim project have reached Rs 87.5 billion (approximately $308.2 million) as of June 30, 2025. These payments have been delayed by over six months and risk further escalation. The CEO warned that the shareholders and sponsors from China and Qatar have expressed deep dissatisfaction over the growing payment backlog, and have urged the government of Pakistan to take immediate action to reduce the outstanding amount. He also pointed out that the current situation legally entitles PQEPC to suspend operations under Section 9.10 of the Power Purchase Agreement (PPA), without incurring any liquidated damages. Wang emphasised that the project enjoys a comparative advantage in Energy Purchase Price (EPP) tariffs when compared to oil- and RLNG-based power plants. A suspension of operations, he cautioned, would be a 'lose-lose' scenario for both parties and must be avoided through timely payments. He further warned that failure to settle dues could result in a breach of the Loan Agreement and default under the Government of Pakistan's Sovereign Guarantee, jeopardizing the country's financial credibility and investor confidence. Given the critical nature of the situation, Wang has requested the finance minister's intervention and coordination with relevant authorities to expedite financial support to CPPA-G, enabling it to clear outstanding dues to the Port Qasim project at the earliest. The Finance Ministry typically releases Rs 5 billion per month to CPPA-G through an escrow account, set up in coordination with Chinese authorities, for the payment of energy costs to Chinese IPPs. Copyright Business Recorder, 2025
Business Recorder
12-07-2025
- Business
- Business Recorder
EPQL seeks PD's support for early gas supply from Badar field
ISLAMABAD: The Engro Powergen Qadirpur Limited (EPQL) has approached the Power Division for support in expediting the signing of a Supplementary Agreement (SA) to utilise low-BTU indigenous gas from the Badar-1 gas field. In a letter to the Power Division, EPQL CEO Adeel Qamar stated that the company operates a 225-MW power plant running primarily on permeate gas from the Qadirpur gas field under a Power Purchase Agreement (PPA) signed with the Central Power Purchasing Agency Guarantee Limited (CPPA-G) on October 26, 2007. Since the commencement of commercial operations in March 2010, the plant has maintained a high position in the Economic Merit Order (EMO) and supplied 18.9 billion units of electricity to the national grid with high gas-based utilisation. Engro Powergen plant: PD and CPPA-G at odds over gas pricing mechanism The EPQL claims that its operations have delivered substantial benefits to electricity consumers and the Government of Pakistan, including: (i) Rs 89 billion in savings through procurement of low-cost electricity;(ii) $1.6 billion in foreign exchange savings by using indigenous gas; and (iii) Rs 96 billion in revenue for fuel suppliers (SNGPL and OGDCL) from the sale of permeate gas that was previously being flared. 'These benefits were only possible due to the extensive cooperation and support from the Government of Pakistan and its departments, including PPIB, CPPA-G, and NTDC,' said Qamar. To address the declining gas supply from Qadirpur and to enhance the plant's utilization, EPQL, in collaboration with stakeholders such as PPIB and CPPA-G, explored alternative fuel sources. As a result, NEPRA, in its determination dated February 20, 2024, approved the use of low-BTU gas from the Badar-1 field as an additional fuel source for the EPQL's operations. Following NEPRA's approval, the EPQL entered into an agreement with Petroleum Exploration Limited (PEL) on August 5, 2024, for the supply of 8–13 mmscfd of low-BTU gas from Badar-1. Subsequently, the EPQL submitted a draft Supplementary Agreement to the PPA for CPPA-G's review on August 26, 2024, after detailed consultations. However, the company says the matter remains unresolved. 'We note with deep concern that, despite a lapse of 10 months, the matter is still pending with CPPA-G, delaying the opportunity for EPQL to generate additional electricity using low-BTU gas from Badar-1,' Qamar stated. EPQL says the infrastructure for gas supply from Badar-1 is fully operational, and off-take can begin immediately upon receiving the necessary approvals. The transaction is structured on a Take-and-Pay basis, meaning gas will only be used if it qualifies under the Economic Dispatch Merit Order. The company estimates that had the approval been granted by October 2024, it could have generated an additional 122 million units of electricity, resulting in:Rs 787 million in potential savings for power consumers, and$9 million in foreign exchange savings. 'We have consistently followed up with CPPA-G and responded promptly to all queries, but the approval remains pending. Given that we are currently in the peak summer season and relying on high-cost imported fuels for electricity generation, it is imperative to finalize the Supplementary Agreement without further delay,' Qamar added. The EPQL has urged the Power Division to facilitate the earliest possible approval to unlock the economic and operational benefits associated with the project. Copyright Business Recorder, 2025
Express Tribune
10-07-2025
- Business
- Express Tribune
Engro Powergen seeks early gas supply from Badar field
Listen to article Engro Powergen Qadirpur Limited (EPQL) has urged the federal government to expedite the long-pending approval of a supplemental agreement that will allow it to utilise low BTU gas from the Badar-1 field. In a letter sent to Power Division Secretary Dr Muhammad Fakhre Alam Irfan, EPQL Chief Executive Officer Adeel Qamar highlighted that despite completing all technical and procedural formalities, including infrastructure readiness and regulatory approvals, the supplemental agreement remains pending, which was submitted to the Central Power Purchasing Agency-Guarantee (CPPA-G) in August 2024. EPQL, which operates a 225-megawatt power plant primarily on permeate gas from the Qadirpur gas field, entered into an agreement with Petroleum Exploration Limited (PEL) on August 5, 2024 for the supply of 8-13 million cubic feet per day (mmcfd) of low BTU gas from Badar-1. It came after the National Electric Power Regulatory Authority (Nepra) formally approved the use of Badar-1 gas through a determination issued on February 20, 2024. However, the EPQL's proposal to amend its power purchase agreement (PPA) with CPPA-G to incorporate the use of this indigenous gas has yet to be approved. The company has cautioned that continuous delay not only undermines the use of cheaper domestic energy resources but also forces reliance on expensive imported fuels amid peak summer demand. In the letter, the company noted that if approval had been granted by October 2024, EPQL could have generated an additional 122 million units of electricity using the low BTU gas, resulting in estimated savings of Rs787 million for power consumers and $9 million in foreign exchange. 'Infrastructure is ready and we can begin immediate offtake. Moreover, the transaction is based on a take-and-pay model, meaning gas will only be utilised when it is competitive under the economic dispatch merit order,' the CEO said in the letter. Since commencing operations in March 2010, EPQL has contributed approximately 18.9 billion units of electricity to the national grid, saving the country an estimated Rs89 billion and $1.6 billion in foreign exchange by using indigenous permeate gas. The company emphasised that this track record of cost-effective generation underlines the urgent need to begin Badar-1 gas supply. While acknowledging past cooperation from government entities, EPQL expressed dismay over the current lack of progress and called on the Power Division to facilitate early approval of the supplemental agreement. Given the summer energy crisis, the company said that the delay was becoming increasingly costly and counterproductive to the national energy security goals.
