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Minister tells FPCCI body: KE receiving low-cost power from Sindh's hybrid, solar parks
Minister tells FPCCI body: KE receiving low-cost power from Sindh's hybrid, solar parks

Business Recorder

time19 hours ago

  • Business
  • Business Recorder

Minister tells FPCCI body: KE receiving low-cost power from Sindh's hybrid, solar parks

KARACHI: Sindh Minister for Energy, Planning, and Development Syed Nasir Hussain Shah has said that K-Electric is being provided low-cost electricity from the Nooriabad Power Plant and other hybrid and solar parks in Sindh, with plans for further supply in the future. Despite this, KE continues to raise concerns over fossil fuel costs, which he termed 'regrettable.' Speaking at a special session of the FPCCI Standing Committee on Energy, Shah emphasized that the Sindh government opposed the imposition of taxes on solar energy, calling it a clean, affordable, and sustainable source that should be widely promoted. He revealed that a mechanism is being developed to address consumer grievances over K-Electric's overbilling. KE fighting a 'power' struggle, one phase at a time 'The company is receiving cheaper power and can no longer deny it,' he added. Highlighting development efforts, Shah stated that Rs 5 billion have been allocated for infrastructure upgrades in industrial zones, and work is underway at a fast pace. The minister urged the federal government to ensure full representation of Sindh in the National Electric Power Regulatory Authority (NEPRA). 'We demand three representatives from Sindh — one each from the provincial government, the business community, and consumer rights groups,' he said. Shah reiterated Sindh's commitment to achieving energy self-sufficiency through its natural resources, including wind, solar, and Thar coal. 'With serious cooperation from the federal government, Sindh has the potential to power the entire country,' he said. He invited investors to participate in renewable energy projects, announcing that a one-window operation would soon be launched to facilitate them. The event was attended by energy experts, FPCCI officials, industrialists, and investors. Participants called for immediate reforms in net metering, tariff structures, and grid accessibility. Copyright Business Recorder, 2025

Karachi trade bodies urge Nepra to upload KE's May FCA plea on website
Karachi trade bodies urge Nepra to upload KE's May FCA plea on website

Business Recorder

time2 days ago

  • Business
  • Business Recorder

Karachi trade bodies urge Nepra to upload KE's May FCA plea on website

ISLAMABAD: Trade associations from Karachi have urged National Electric Power Regulatory Authority (Nepra) to upload K-Electric's Fuel Charges Adjustment (FCA) petition for May 2025 without further delay. In letters addressed to Nepra Registrar, the Bin Qasim Association of Trade and Industry (BQATI), Korangi Association of Trade and Industry (KATI), and Pakistan Tanners Association (PTA) raised concerns over the prolonged unavailability of KE's FCA request. The Associations anticipate a significant negative adjustment in May FCA, which could offer relief to industries struggling with high energy costs. However, the federal government is reportedly aiming to implement a uniform FCA policy across the country — an approach that could delay or reduce the impact of FCA adjustments specific to K-Electric's consumers. FCA: Nepra, Karachi stakeholders oppose PD proposal In April 2025, the Power Division attempted to block KE's FCA adjustment under the pretext of a uniform national FCA policy, despite the absence of formal approval from the Federal Cabinet. Nepra declined to act on the Power Division's request, citing the lack of official government authorization. 'We wish to express concern over the continued non-availability of K-Electric's FCA petition for May 2025 on Nepra's official website. Given the significant impact of monthly FCA adjustments on the cost structure of industrial operations, timely public access to this petition is essential for transparency, stakeholder engagement, and financial planning,' the Associations said in a joint statement. They urged Nepra to upload the petition promptly and schedule the associated public hearing at the earliest opportunity. 'We hope the regulatory process will proceed independently and remain free from external delays or influence, in line with Nepra's statutory role as an autonomous and impartial regulator. Your prompt attention to this matter will be greatly appreciated by the industrial community of Karachi,' the letter stated. This issue is expected to surface during the public hearing on the FCA petitions of power distribution companies (DISCOs) scheduled for July 30, 2025. Copyright Business Recorder, 2025

Sindh PA to take up resolution against NEPRA
Sindh PA to take up resolution against NEPRA

Express Tribune

time2 days ago

  • Politics
  • Express Tribune

Sindh PA to take up resolution against NEPRA

A resolution has been tabled in the Sindh Assembly against the National Electric Power Regulatory Authority's (NEPRA) decision, which will be discussed in detail in the House on Tuesday (today). The resolution has been supported by the Sindh government. Senior Minister Sharjeel Inam Memon unequivocally said that the Constitution does not allow electricity distribution companies to impose collective punishment on people. During the Sindh Assembly session on Monday, MQM member Amir Siddiqui tabled the resolution, stating that NEPRA's July 18 decision to collect Rs50 billion from the people of Karachi is unjust. He said that NEPRA has no right to punish an entire area for one person's theft. He said that K-Electric (KE)has failed to collect bills, and this has not stopped electricity theft, yet the punishment is being meted out to the people who pay their bills regularly. Sharjeel said that KE's inability to collect bills is not a new issue and that NEPRA's decision to allow KE to collect Rs50 billion from Karachiites is unjust.

KE agrees to pay Sindh Rs9b electricity duty
KE agrees to pay Sindh Rs9b electricity duty

Express Tribune

time7 days ago

  • Business
  • Express Tribune

KE agrees to pay Sindh Rs9b electricity duty

Additional concerns were raised over capacity payments to K-Electric's power plants, projected to cost over Rs 82b. PHOTO: FILE The K-Electric (KE) after several years of delay has started payments of electricity duty amounting to Rs32 billion, it has collected from consumers through monthly bills, to the Sindh government. As per the agreement, the power utility has agreed to pay Rs1.25 billion to the provincial government in two installments. This move is part of a broader agreement under which KE has committed to pay Rs9.142 billion out of a total outstanding amount exceeding Rs32 billion. A payment schedule has also been issued. According to the agreed timeline, the power utility will pay Rs4.258 billion to the Sindh government by September 2025. Additionally, the K-Electric will now be required to regularly remit the electricity duty it collects from consumers through monthly bills. The issue of non-payment of electricity duty was taken up by the Public Accounts Committee (PAC). Meanwhile, the Rs25 billion dues between KE and the Karachi Water and Sewerage Board remain unresolved. K-Electric has warned government departments of potential disconnection if bills are not paid on time. The power utility in its letter to the secretary of the Sindh Energy Department referred to the discussion between KE team and PAC members on June 31, during which payment with respect to Electricity Duty (ED) was deliberated upon. As agreed, reconciled electricity consumption dues of the Karachi Water and Sewerage Corporation (KWSC) will be held for adjustment against ED accumulated up to August 2024 and the excess amount of ED for the said period shall be paid by KE in line with the agreed installments as reflected in the schedule. Furthermore, KE will also deposit the respective ED amount for the period from September 2024 to September 2025, no later than 30th September 2025, into the respective Government Treasury. Moreover, it was also discussed that payment to KE for electricity dues by Sindh government and its various departments should also be paid on timely basis failing which, KE would be at liberty to take appropriate action including, but not limited to, disconnection of the respective electricity connections albeit in accordance with law.

Nepra issues pending notifications for KE tariffs
Nepra issues pending notifications for KE tariffs

Business Recorder

time19-07-2025

  • Business
  • Business Recorder

Nepra issues pending notifications for KE tariffs

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has issued pending notifications for K-Electric's (KE) supply, distribution, and transmission tariffs for the period 2023–24 to 2029–30 under the Multi-Year Tariff (MYT) regime, stating that the federal government's pending review motion does not legally restrain the regulator from notifying its earlier determinations. Previously, the federal government was responsible for issuing tariff notifications. However, amid prolonged delays and under pressure from the International Monetary Fund (IMF) and the World Bank, the law was amended in 2021, granting NEPRA the authority to notify tariffs directly. 'It is now the duty of the Authority to issue the requisite notifications of its determinations if the government fails to do so or if any reconsideration request remains pending,' official sources said. Under Rule 31 of the NEPRA Act, the Authority can issue such notifications if the federal government does not act within the specified time. DISCOs and KE: Nepra approves revised average uniform SoT Although the government's review motion is still under consideration, NEPRA clarified that if it revises its previous determinations, the tariffs will be amended accordingly. In a related development, Deputy Prime Minister and Foreign Minister Ishaq Dar recently chaired a high-level, confidential meeting to discuss KE's ownership issues involving Al-Jomaih, following a strongly worded letter from Pakistan's Ambassador to Saudi Arabia. KE's average power supply tariff has been fixed Rs 39.97 / kWh which includes power purchase excluding transmission cost of Rs 31.96 per unit, transmission cost of Rs 2.86 per unit, distribution cost Rs 3.31 per unit, supply margin Rs 2.28 per unit and Prior Year Adjustment negative Rs 0.44 per unit. The power utility company's total revenue requirement is estimated to be Rs 606.920 billion, for FY 2023-24, of which supply margin will be Rs 34.681 billion, O&M cost Rs 5.91 billion, working capital negative Rs 1.244 billion, recovery loss, Rs 36.253 billion, gross margin Rs 40.921 billion, other income negative Rs 6.240 billion, net margin Rs 34.681 billion and prior year adjustment negative Rs 6.690 billion. The Authority also considering the fact that FY 2023-24 has already lapsed and FY 2024-25 is almost 11 months gone, also obtained ICE's actual recovery ratios for the FY 2023-24 and FY 2024-25. As submitted by KE its actual recovery for the FY 2023-24 remained at 91.50%, whereas FY 2024-25 is expected to close at 90.50%. The financial impact of under recovery of 8.50% for FY 2023-24 and 9.50% for FY 2024-25, as reported by KE, is around Rs.40 billion and Rs.57 billion respectively. The Authority noted that return allowed to KE for its distribution function is around Rs.21.6 billion, meaning thereby that effectively KE would be incurring losses for the first 02 years of MYT, if no recovery loss is allowed to KE. This may compromise the financial viability of the company, which is neither in the interest of the consumers nor power system as whole. In another notification NEPRA has approved distribution tariff of Rs 3.31/ kWh and Rs 2.684 / kWh for investment of Rs 43.447 billion during the validity of MYT. Copyright Business Recorder, 2025

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