Latest news with #Leghari
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
Business Recorder
3 days ago
- Business
- Business Recorder
Energy wastage: Leghari seeks support from CMs, Ahsan
ISLAMABAD: Minister for Power Sardar Awais Leghari has sought support from the provincial chief ministers and the Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, for the implementation of building codes aimed at curbing energy wastage. In letters addressed to the minister for planning and provincial chief ministers, Leghari referred to his earlier communication dated January 1, 2025, regarding the 'Implementation of Energy Building Code–2023.' He emphasised that the building sector is a major contributor to the national energy crisis, accounting for over 60 per cent of total energy consumption. 'This demand peaks in the summer months due to high cooling loads resulting from conventional building designs that largely ignore energy efficiency during planning, construction, and operational phases.' Minister launches 'Energy Conservation Building Code 2023' Highlighting the urgency of the matter, Leghari recalled that the prime minister, during a strategic roadmap meeting on energy conservation held on February 1, 2023, had directed the National Energy Efficiency and Conservation Authority (NEECA) to revise the Building Code of Pakistan (Energy Provisions 2011). Accordingly, development authorities were instructed to amend their building by-laws to include energy efficiency measures. The revised Energy Conservation Building Code (ECBC-2023) was approved by the Federal Cabinet on August 9, 2023, and the National Economic Council (NEC) also directed all provinces to ensure its implementation. 'It is essential to recognize that both the public and private sectors play a pivotal role in shaping the energy landscape of the building sector,' the minister stated. 'Public sector investments under the Public Sector Development Programme (PSDP), and private developments regulated by municipalities and local governments, present a vital opportunity to promote energy efficiency.' Leghari has reiterated his proposal to integrate ECBC-2023 into PSDP projects by incorporating an energy efficiency analysis section into the Planning Commission's manuals (PC-1 to PC-5). He suggested that the approval of PSDP projects—particularly infrastructure schemes—should be contingent upon achieving at least 50 per cent energy savings compared to conventional designs. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
MYT regime: Nepra unveils KE's 7-year D&T tariffs
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has announced K-Electric's distribution and transmission tariffs for a seven-year period (FY 2023-24 to FY 2029-30) under the Multi-Year Tariff (MYT) regime. NEPRA has estimated a revenue requirement of Rs 50.284 billion for the distribution system for FY 2024-25, approving an average tariff increase of Rs 3.31 per unit. The power utility company has also been allowed Use of System Charges (UoSC) revenue of Rs 43.447 billion for the FY 2023-24, its impact will also be around Rs 3.30 per unit and it can be changed when investment plan is approved. These determinations will not affect the electricity rates charged to consumers, as these continue to be governed under the uniform tariff policy applicable across Pakistan. Leghari's remarks on KE's 7-year MYT spark controversy NEPRA held a public hearing on June 27, 2024, on the distribution tariff, attended by several interveners from Karachi and other areas. K-Electric had requested a return on equity of 16 percent for its distribution segment, but NEPRA approved it at 14 percent, significantly lower than requested by K-Electric. Similarly, the return on equity for transmission was approved at 12 percent, down from KE's requested 15 percent. Regarding the seven-year tariff control period, KE explained that as a private entity, it secures financing without government guarantees. Lenders require cash flow projections over the assets' life, which for KE exceeds the 7-year control period. KE's long-term loans usually span 10-12 years, while asset life ranges from 10 to 30 years. KE requested a tariff control period of seven years (FY 2024 to FY 2030), consistent with previous allowances and the approved investment plan for transmission and distribution (T&D). A sustainable long-term tariff is crucial for financing and equity investment, as lenders require clear revenue and profitability forecasts. A shorter control period would hinder KE's ability to secure financing and assess project viability. Copyright Business Recorder, 2025
Express Tribune
23-05-2025
- Business
- Express Tribune
Provinces owe Rs161b for electricity charges
Say balancing of payments alone does not constitute economic planning. PHOTO: BLOOMBERG A Senate panel was told on Friday that the provincial governments have not yet paid a total of Rs161 billion that they owe to the federal government for electricity charges. The Senate Standing Committee on Power convened on Friday to discuss key issues including adjustments of provincial power dues through the National Finance Commission (NFC) and the privatisation of power distribution companies (DISCOs). During the meeting, the committee chairman, Senator Mohsin Aziz, said that the provinces claim that the federal government has not cleared pending dues. The Power Division officials stated that the provincial governments had not paid a total of Rs161 billion. Punjab owes the federal government Rs42 billion; Khyber Pakhtunkhwa, Rs10 billion; Sindh, Rs68 billion and Balochistan, Rs42 billion. The officials clarified that the amount is for power supplied to provincial departments, while federal dues may relate to hydel power adjustments. Minister for Power Awais Leghari said the matter was discussed with the Finance Ministry recently and that he has written to all provincial chief ministers for settlement of dues. Leghari informed the committee that following the reconstitution of DISCOS' boards, losses have been reduced by Rs140 billion as of March, adding that the government has assured the IMF of its commitment to privatise the DISCOs. "The government's role is not to run power distribution companies. The goal is to privatise all DISCOs within the next three years. In the first phase, three DISCOs will be privatised. A financial advisor is already working on the process and has submitted a due diligence report," he said. Leghari expressed confidence that the privatisation of the three companies will be completed within the next six months, although the committee chair noted it may be by June next year.
Business Recorder
20-05-2025
- Business
- Business Recorder
Net-metering connections: govt plans to digitalise process with new online portal
The government is planning to 'simplify and digitalise' the process of applications for new net-metering connections through a new online portal, it was learnt on Tuesday. In this regard, Energy minister Sardar Awais Ahmad Khan Leghari chaired a meeting on Monday to review the provision of new net-metering connections, according to a ministry statement. 'Immediate and effective solutions must be found for the issues faced in this process,' the minister was quoted as saying in the statement. He emphasised making the procedure for 'new applications simple, transparent, and user-friendly'. Leghari says govt to 'rationalise net metering,' aims to ease burden on consumers According to the statement, employees of electricity distribution companies be provided with 'necessary training regarding the new portal and that practical demonstrations also be conducted'. 'An awareness programme should be developed to educate electricity consumers about the use of the portal and its transparency,' Leghari said. Earlier this year, the government announced to reduce the buyback rate for net metering electricity to Rs10 per unit from Rs27 per unit, attributing the decision to 'significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers'. However, after backlash, the government later decided to broaden the scope of consultation on the Solar Net Metering Regulations approved by the Economic Coordination Committee (ECC) and re-submit the recommendations to the federal cabinet after taking further feedback from all stakeholders.
