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Business Recorder
3 days ago
- Business
- Business Recorder
KE tariff: Review plea will be filed with Nepra: minister
ISLAMABAD: The Minister for Power, Sardar Awais Ahmad Khan Leghari has announced that the federal government will file a review petition with Nepra regarding K-Electric's tariff, emphasizing that companies should generate profits through efficiency — not subsidies or charitable support. His statement came a day after he took to X and raised several questions about NEPRA's recent determination regarding K-Electric. On Thursday, speaking to the media after addressing an energy workshop organized by the Centre for Economic Research in Pakistan (CERP), Leghari said the Power Division is preparing the petition to ensure that neither the federal government nor electricity consumers face undue financial pressure. Nepra's decisions on KE tariffs: Power Div. flags potential consumers harm, urges revision 'We are moving towards privatization and K-Electric — like other private investors—should earn profits based on performance,' he said. 'Handouts are not a sustainable model; efficiency must take precedence. Regulatory laws must be enforced in all distribution companies (DISCOs).' KE's approved tariff is 18 per cent higher than previously approved Multi-Year Tariff. Responding to a question, Leghari said the Power Division would ask Nepra to ensure fair pricing for consumers. 'The burden of K-Electric's current tariff structure is being carried by consumers of other distribution companies through cross-subsidization and taxes,' he noted. 'We hope Nepra will make decisions that benefit both the country and its people,' he added. On net metering, the minister said the policy has been revisited and stakeholder consultations have been conducted. 'If approved, the revised net metering policy will be implemented within a month,' he stated. Leghari also highlighted reductions in electricity costs: 'Electricity prices have decreased by 31% for the industrial sector and by 50% for 18 million household consumers.' However, he acknowledged that climate change has led to a drop in hydropower generation, forcing reliance on more expensive sources. 'The Fuel Price Adjustment (FPA) varies monthly, but overall, electricity prices in Pakistan have declined,' he said. On the circular debt issue, Leghari revealed that the government plans to borrow from banks to eliminate the mounting circular debt soon. Earlier, while addressing the workshop, the minister said the Prime Minister will soon announce a new industrial tariff policy aimed at enhancing competitiveness. He reiterated the government's commitment to renewable energy, noting that 3,000 megawatts of furnace oil-based generation power plants have shut down in recent months. Leghari expressed the view that the government's aim is to reduce power tariffs on a sustainable basis. He stated that a revolution in alternative energy sources has arrived in Pakistan adding that solar energy is a promising source and that there has been an increase in solar energy production. 'In the past, estimates in the energy sector were not realistic,' he added. 'We have been conducting research and analysis in the energy sector for the past year. We are reviewing agreements with IPPs (Independent Power Producers) and trying to detach the government from purchasing electricity in the future,' he said. The minister further stated that the inclusion of the Bhasha Dam in the electricity system will be significant. 'We are trying to ensure that consumers do not suffer due to poor planning in the electricity system,' he said. 'Reforms are being made in the transmission system. We lack the technology to assess the pressure on transformers and feeders,' he added, noting that the government is working to ensure coal and gas-powered plants do not impact the environment. 'There is ample electricity available through the grid over the next three years,' he said. Copyright Business Recorder, 2025
Express Tribune
04-04-2025
- Business
- Express Tribune
Calculate your savings on April electricity bill following power tariff reductions
Listen to article Prime Minister Shehbaz Sharif on Thursday announced a reduction in electricity prices by 15% or Rs 7.41 per unit for about 40.3 million consumers, primarily benefiting the 35 million residential users. This price reduction follows seasonal tariff adjustments and a series of government measures, including the quarterly tariff adjustment, monthly fuel cost reduction, and increased subsidies. The government explained that the price cut consists of several components: Quarterly tariff adjustment : Rs 3.40 per unit reduction Monthly fuel cost adjustment : Less than Rs 1 per unit reduction Increased subsidy: Rs 1.71 per unit increase With these adjustments, the total reduction for consumers amounts to Rs 7.41 per unit. The revised domestic electricity prices now average Rs 34.37 per unit, down from the previous rate of Rs 48.70 per unit. Industrial consumers will also benefit from a Rs 7.69 per unit reduction, bringing their rate to Rs 40.51 per unit. The relief package also includes the following benefits: Commercial consumers : A reduction of Rs 8.58 per unit or 12%, bringing the new rate to Rs 62.47. Industrial consumers : A reduction of Rs 7.69 per unit or 13%, with the new rate set at Rs 40.51. Residential consumers: A reduction of Rs 6.14 to Rs 6.71 per unit, depending on their consumption, translating to a 17% to 32% cut in prices. For protected residential consumers, those with up to 100 units of consumption will see a price reduction of Rs 6.14 per unit, resulting in a new rate of Rs 8.52 per unit. For consumers with up to 200 units, the price will be reduced by Rs 6.14 per unit, bringing the rate to Rs 11.51 per unit. Consumers using up to 300 units will benefit from a reduction of Rs 7.14 per unit, with their new rate set at Rs 34. Similarly, residential consumers using more than 300 units will see a reduction of Rs 7.24 per unit, with a new rate of Rs 48.46. How much will you save on your April electricity bill? Domestic consumers savings (April bill) Usage Old Rate (Rs) New Rate (Rs) Savings (Rs) 200 Units Rs 9,740 Rs 7,528 Rs 2,212 300 Units Rs 14,610 Rs 11,292 Rs 3,318 500 Units Rs 24,350 Rs 18,820 Rs 5,530 Industrial consumers savings (April bill) Usage Old Rate (Rs) New Rate (Rs) Savings (Rs) 1,000 Units Rs 58,500 Rs 40,510 Rs 17,990 3,000 Units Rs 175,500 Rs 121,530 Rs 53,970 Special consumer price reductions Consumer Type Old Price (Rs) New Price (Rs) Price Cut (Rs) % Reduction Lifeline (Up to 100 Units) Rs 14.66 Rs 8.52 Rs 6.14 32% Protected (Up to 200 Units) Rs 17.65 Rs 11.51 Rs 6.14 35% Up to 300 Units Rs 41.14 Rs 34.00 Rs 7.14 17% Over 300 Units Rs 55.70 Rs 48.46 Rs 7.24 13% It is important to note that these rates are for base tariffs and do not include additional charges such as taxes, including Power Duty, GST, PTV License Fee, Fuel Price Adjustment, and other surcharges, which will still apply to the final bill
