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Express Tribune
5 days ago
- Business
- Express Tribune
NEPRA reserves ruling on tariff
Listen to article The National Electric Power Regulatory Authority (Nepra) on Thursday reserved its judgement on a request for increase in electricity rates up to Rs1.27 per unit on account of fuel charges adjustment (FCA) for April 2025. Nepra held a hearing to consider the tariff hike plea submitted by the Central Power Purchasing Agency Guarantee Limited (CPPA-G). The hearing was chaired by Nepra chairman and attended by the representatives of CPPA-G, officials of the Ministry of Energy, business community members, journalists and members of the public. According to Nepra, CPPA-G had filed a request for a tariff hike of Rs1.268 per unit under the FCA for April. If approved, the increase will be applicable for one month only. The proposed adjustment will apply to all consumers of power distribution companies (DISCOs), excluding lifeline consumers, pre-paid meter users and electric vehicle charging stations. Nepra also stated that the adjustment would not be applicable to K-Electric consumers. The regulator emphasised that it carefully heard the views of all relevant stakeholders. It will now conduct further scrutiny of the data before issuing a detailed decision. According to the CPPA-G petition, the actual fuel cost borne during April was Rs9.9197 per kilowatt-hour (kWh) while the reference cost – used for billing consumers – was Rs7.6803 per kWh. The difference of Rs1.2685 per unit is now sought to be recovered from consumers. In its request, CPPA-G stated that a total of 10,513 gigawatt hours (GWh) of electricity was generated in April, of which 10,196 GWh – nearly 97% – was supplied to DISCOs while the rest was lost in transmission. Data revealed that power generation in the month under review remained heavily reliant on costly imported fuels. Over 20% of electricity was generated by using imported liquefied natural gas (LNG) at an extremely high cost of Rs24.26 per unit. The electricity produced from imported coal also proved expensive, costing Rs16.60 per unit. While the share of hydroelectric power was relatively significant at 21.94% and nuclear power contributed 17.91% at a low cost of Rs2.10 per unit, these cheaper sources were unable to offset the impact of expensive fuel-based generation. Local coal accounted for 14.51% of the generation at Rs11.21 per unit and gas-based power added another 8% at Rs11.82 per unit. Power generation from furnace oil, though minimal at just 0.79%, was the costliest, being recorded at Rs28.77 per unit. The petition highlighted a small quantity of power — around 0.31% – imported from Iran, which came at a high cost of Rs25.35 per unit. No generation was recorded from high-speed diesel, which is typically reserved for emergency use due to its high cost. The proposed tariff increase, if approved, will be reflected in the electricity bills of millions of consumers, excluding lifeline users.
Business Recorder
22-05-2025
- Business
- Business Recorder
April FCA: Power Division seeks Rs1.27/unit positive adjustment
ISLAMABAD: Power Division has sought a positive adjustment of Rs 1.27 per unit in electricity tariffs for April 2025 to recover Rs 13 billion under the monthly Fuel Charges Adjustment (FCA) mechanism for consumers of Distribution Companies (Discos). The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on CPPA-G's request on May 29, 2025. According to data submitted to Nepra, total electricity generation in April 2025 stood at 10,513 GWh— an increase of 22.9 percent compared to 8,639 GWh in April 2024. The overall basket price of electricity during April 2025 was Rs 9.9197 per unit, with the total cost of generation recorded at Rs 104.288 billion. March FCA: KE seeks Rs5.02 interim negative adjustment According to data submitted to Nepra, in April 2025, hydel generation recorded an increase of 11.4 per cent to 2,306 GWh in April 2025 as compared to 2070 Gwh in April 2024. Power generation from local coal-fired power plants was 1,525 GWh in April 2025 which was 14.51 percent of total generation at a price of Rs 11.2115 per unit against 881 GWh in April 2024 price of which was Rs 15.2284 per unit. It shows an increase of 73 per cent in local coal generation. Generation of 1,054 GWh was generated from imported coal at Rs 16.6062 per unit (10.02 percent) against only 21 GWh in April 2024 at a price Rs 22.8405 per unit Generation from RFO was 83 Gwh at Rs 28.7679 per unit. Electricity generation from gas-based power plants was 842 GWh (8.01 percent) at Rs 11.8166 per unit against 975 Gwh in April 2024 at a price of Rs 13.2535 per unit. Generation from RLNG was 2,157 GWh (20.52 percent of total generation) at Rs 24.2632 per unit. Electricity generation from nuclear sources was 1,882 GWh at Rs 2.1038 per unit (17.91 percent of total generation) against 2,043 GWh in April 2024 showing a decrease of 7.9 per cent and electricity imported from Iran was 32 GWh at Rs 25.3465 per unit. Power generation from baggasse recorded 37 GWh at a price calculated at Rs 5.9822 per unit. The energy generated from wind was recorded at 478 GWh, 4.55 percent of total generation and solar at 115 GWh, 1.10 percent of total generation in April 2025. The total energy generated was 10, 513 GWh, against 8,639 GWh in April 2024, showing an increase of 22.9 per cent at a basket price of Rs 9.9197 per unit. The total cost of energy was Rs 104.288 billion. However, with proposed previous negative adjustment of Rs 11.397 billion and sale of electricity IPPs at (negative Rs 1.648 billion) net electricity delivered to Discos in April 2025 was 10,196 GWh at a rate of Rs 8.9488 per unit, total price of which was Rs 91.243 billion. Since in April 2025, net delivered electricity was 10,196 GWh against 8,375 GWh in corresponding month of 2024, showing a growth of 21.7 percent. CPPA-G argued that since reference fuel charges for April 2025 were Rs 7.6803 per unit while actual fuel charges were Rs 8.9488 per unit; hence, positive adjustment of Rs 1.2685 per unit be granted. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
April FCA: PD seeks Rs1.27/unit positive adjustment
ISLAMABAD: Power Division has sought a positive adjustment of Rs 1.27 per unit in electricity tariffs for April 2025 to recover Rs 13 billion under the monthly Fuel Charges Adjustment (FCA) mechanism for consumers of Distribution Companies (Discos). The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on CPPA-G's request on May 29, 2025. According to data submitted to Nepra, total electricity generation in April 2025 stood at 10,513 GWh— an increase of 22.9 percent compared to 8,639 GWh in April 2024. The overall basket price of electricity during April 2025 was Rs 9.9197 per unit, with the total cost of generation recorded at Rs 104.288 billion. March FCA: KE seeks Rs5.02 interim negative adjustment According to data submitted to Nepra, in April 2025, hydel generation recorded an increase of 11.4 per cent to 2,306 GWh in April 2025 as compared to 2070 Gwh in April 2024. Power generation from local coal-fired power plants was 1,525 GWh in April 2025 which was 14.51 percent of total generation at a price of Rs 11.2115 per unit against 881 GWh in April 2024 price of which was Rs 15.2284 per unit. It shows an increase of 73 per cent in local coal generation. Generation of 1,054 GWh was generated from imported coal at Rs 16.6062 per unit (10.02 percent) against only 21 GWh in April 2024 at a price Rs 22.8405 per unit Generation from RFO was 83 Gwh at Rs 28.7679 per unit. Electricity generation from gas-based power plants was 842 GWh (8.01 percent) at Rs 11.8166 per unit against 975 Gwh in April 2024 at a price of Rs 13.2535 per unit. Generation from RLNG was 2,157 GWh (20.52 percent of total generation) at Rs 24.2632 per unit. Electricity generation from nuclear sources was 1,882 GWh at Rs 2.1038 per unit (17.91 percent of total generation) against 2,043 GWh in April 2024 showing a decrease of 7.9 per cent and electricity imported from Iran was 32 GWh at Rs 25.3465 per unit. Power generation from baggasse recorded 37 GWh at a price calculated at Rs 5.9822 per unit. The energy generated from wind was recorded at 478 GWh, 4.55 percent of total generation and solar at 115 GWh, 1.10 percent of total generation in April 2025. The total energy generated was 10, 513 GWh, against 8,639 GWh in April 2024, showing an increase of 22.9 per cent at a basket price of Rs 9.9197 per unit. The total cost of energy was Rs 104.288 billion. However, with proposed previous negative adjustment of Rs 11.397 billion and sale of electricity IPPs at (negative Rs 1.648 billion) net electricity delivered to Discos in April 2025 was 10,196 GWh at a rate of Rs 8.9488 per unit, total price of which was Rs 91.243 billion. Since in April 2025, net delivered electricity was 10,196 GWh against 8,375 GWh in corresponding month of 2024, showing a growth of 21.7 percent. CPPA-G argued that since reference fuel charges for April 2025 were Rs 7.6803 per unit while actual fuel charges were Rs 8.9488 per unit; hence, positive adjustment of Rs 1.2685 per unit be granted. Copyright Business Recorder, 2025
Express Tribune
22-05-2025
- Business
- Express Tribune
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.
Business Recorder
20-05-2025
- Business
- Business Recorder
NEPRA approves KAPCO's tripartite power agreement
The National Electric Power Regulatory Authority (NEPRA) has approved a tripartite agreement between Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), Kot Addu Power Company Limited (KAPCO) and National Grid Company of Pakistan Limited that will govern electricity sales from KAPCO's power plant. KAPCO disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday. 'We are pleased to advise that the NEPRA vide letter dated May 19, 2025 addressed to the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) has granted approval of the TriPartite Power Purchase Agreement (TPPA) between the CPPA-G, KAPCO and National Grid Company of Pakistan Limited along with the schedules,' read the notice. However, before the TPPA can officially become effective, certain conditions set by NEPRA must be met, the listed company said. 'The directions of NEPRA as stipulated in its letter dated May 19, 2025 are to be complied with for signing of the TPPA, which, inter alia, include the conduct of Initial Capacity Test (ICT) and the Heat Rate Test (HRT) for bench marking efficiency and an independent engineer is to evaluate and determine Simple Cycle Efficiency/Heat Rate numbers which are to be submitted before NEPRA along with ICT and HRT Reports.' Once these requirements are met, the TPPA will become effective for the operational phase of the power plant, KAPCO said. Last month, NEPRA granted a provisional tariff to KAPCO on a Take-or-Pay basis after a hectic debate at a public hearing on April 8, 2025. Incorporated in Pakistan on April 25, 1996, as a public limited company, KAPCO's principal activities are to own, operate and maintain a multi-fuel fired power station with fifteen generating units with a nameplate capacity of 1,600 MW in Kot Addu, Punjab. The company sell the electricity produced to a single customer, the Water and Power Development Authority (WAPDA) under a Power Purchase Agreement (PPA).
