Latest news with #CentralPowerPurchasingAgency-Guarantee
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.
Express Tribune
24-04-2025
- Business
- Express Tribune
Competitive power market faces delays
Listen to article Despite approvals from the Economic Coordination Committee (ECC) and the National Electric Power Regulatory Authority (Nepra), following a six-month test run by the Central Power Purchasing Agency-Guarantee (CPPA-G), the Competitive Trading Bilateral Contracts Market (CTBCM) has yet to become fully operational. Leading stakeholders from across Pakistan's energy and policy landscape convened a high-level multi-stakeholder dialogue hosted by Renewables First (RF) to discuss financial and technical readiness for the operationalisation of a competitive electricity market, a reform process that has shown accelerated progress in recent years. The event brought together senior government representatives, legislators, regulatory bodies, development partners, and power sector experts to chart a path forward for implementing the long-delayed market reform under the CTBCM. The CTBCM reform has already been approved by the ECC and Nepra, followed by a six-month test run by CPPA-G. However, its commercial operation has not begun to date. During the event, the stakeholders expressed concern that the power sector of Pakistan remains entrenched in a single-buyer model, with CPPA-G as the sole purchaser and distribution companies (DISCOs) holding exclusive distribution licences. This structure has led to escalating capacity payments, underutilised generation assets, and suppressed private-sector participation. Ramsha Panhwar, energy analyst at Renewables First, presented a critical overview of one of the most debated aspects of the CTBCM regime: the Use of System Charge (UoSC). She pointed out that the market has remained uncompetitive primarily because these charges have not been rationalised, making them unaffordable and excessively high for market participants. "The UoSC is a central pillar of the CTBCM regime, determining how market participants pay for access to the transmission and distribution networks. However, more than 80% of the proposed UoSC comprises stranded costs and cross-subsidy, which exacerbates the overall power tariff. It directly affects the economics of open access and competitive supply," said Panhwar. "Rethinking the UoSC with a planned and phased recovery of stranded costs reduces the overall UoSC, making it attractive and affordable for the market participants."
