Latest news with #Mepco
Express Tribune
3 days ago
- Business
- Express Tribune
DISCOs seek recovery of billions
Listen to article Electricity consumers are expected to face a tariff hike in financial year 2025-26 under the multiyear tariff regime. A majority of power distribution companies (DISCOs) have submitted petitions to the power-sector regulator, seeking the recovery of billions of rupees from consumers to meet their annual revenue requirements. The National Electric Power Regulatory Authority (Nepra) will conduct a public hearing on June 13 in response to the petitions. All eight government-owned DISCOs have approached Nepra with requests for an interim tariff increase for fiscal year 2025-26. The petitions, under the multiyear tariff (MYT) regime covering the period from FY 2025-26 to FY 2029-30, have been filed by Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), Quetta Electric Supply Company (Qesco), Sukkur Electric Power Company (Sepco), Hyderabad Electric Supply Company (Hesco), Peshawar Electric Supply Company (Pesco), Tribal Areas Electric Supply Company (Tesco) and Hazara Electric Supply Company (Hazeco). The revenue requirements of these DISCOs show a significant financial burden for the upcoming fiscal year, which may be passed on to consumers. Mepco has sought the highest interim revenue requirement of Rs139.1 billion, followed by Pesco at Rs81.4 billion, Gepco at Rs67.8 billion, Sepco at Rs58 billion, Qesco at Rs50.1 billion, Hesco at Rs39.4 billion, Hazeco at Rs12.3 billion and Tesco at Rs7.3 billion. Mepco has also made a higher demand on account of operations and maintenance (O&M) cost at Rs63.1 billion, largely driven by staff pay and allowances of Rs22.3 billion, post-retirement benefits of Rs29 billion, and repair and maintenance expenses of Rs7.8 billion. Gepco reported O&M cost of Rs35.3 billion, including Rs16.6 billion for pay and allowances and Rs13.8 billion for retirement benefits. Pesco's O&M cost was estimated at Rs37 billion, with Rs32.7 billion alone allocated to salaries. Other companies also cited sizeable O&M allocations. Hesco claimed Rs25.1 billion, Sepco Rs22.2 billion, Qesco Rs17 billion, Tesco Rs3.8 billion and Hazeco Rs7.8 billion. Depreciation and the return on rate base (RORB) formed another significant part of the cost buildup. Mepco again topped the list with Rs8.9 billion in depreciation and Rs16.3 billion in RORB. Gepco followed with Rs4.8 billion in depreciation and Rs8.8 billion in RORB. Pesco sought Rs5.6 billion and Rs12.3 billion under the same heads, while Hesco demanded Rs3.2 billion in depreciation and Rs6.8 billion in RORB. Qesco's RORB was estimated at Rs15.7 billion alongside Rs297 billion for depreciation. Some power distribution companies have sought adjustments for prior years as well, which resulted in an increase in revenue requirements. Mepco claimed Rs59.5 billion, Pesco claimed Rs29.3 billion, Gepco sought Rs24.4 billion and Sepco requested Rs25.6 billion. Qesco and Hesco requested Rs16.3 billion and Rs5.8 billion, respectively, while Tesco and Hazeco did not include prior year adjustments. Tesco and Sepco also factored in bad debt provisions, with Rs1.6 billion and Rs5.6 billion respectively. Sepco also reported Rs1.6 billion in finance costs. To consider these petitions, Nepra has scheduled a public hearing on June 13 and invited all parties to submit their views and comments in response to the revenue requirements made by the distribution companies.
Trade Arabia
03-03-2025
- Business
- Trade Arabia
Mepco expansion to double paper production
The Middle East Paper Manufacturing and Production Company (Mepco), a leading paper industry company in the region, has laid foundation for its fifth paper production line (PM5), the largest of its kind in the Middle East. The project is being managed by Al Tadweer Al Akhdar, a fully-owned subsidiary of Mepco, dedicated to advancing innovative and sustainable paper production solutions. The new production line (PM5) will double Mepco's total production capacity from 425,000 tons to 875,000 tons annually, strengthening its market position and establishing its dominance in the region. This milestone marks a new era for the company by expanding capacity while introducing a product never before produced in the region, the company said. PM5 will enable Mepco to produce high-quality, low-basis weight paper with energy-efficient technology that reduces operational costs compared to other machines. This cost-effective alternative will eliminate the need for regional buyers to rely on imports, offering a competitive, locally-produced solution. By closing the gap on the Kingdom's 30% reliance on imported containerboard, PM5 will empower Saudi Arabia to meet its own demand and become a net-positive exporter of paper products. But the impact goes beyond numbers, the company said, highlighting: • Economic Growth: PM5 is set to double Mepco's revenue and reinforce its leadership in the regional market. It will create new job opportunities, stimulate economic growth, and support local businesses by prioritizing local sourcing and strengthening the domestic supply chain, ensuring that the impact of this project extends beyond Mepco's factory walls. • Sustainability: PM5 will divert an additional 500,000 tons of paper waste from landfills every year, raising Mepco Group's total to 1 million tons of repurposed paper waste annually, a major milestone in advancing the company's circular economy efforts. Eng Faisal Alawi Haddawi, Group President of Mepco, commented: "PM5 is about the impact it brings to the whole value chain. Doubling our production capacity to 875,000 tons annually will significantly boost Mepco's revenue and create new job opportunities across the value chain. With PM5, we are introducing low-basis weight paper, a first of its kind in the region, offering superior quality and a competitive alternative to imports. Our focus remains on sustainable growth, combining innovation and operational excellence to drive both economic and environmental progress." Musab Sulaiman Al-Muhaidib, Chairman of the Board of Directors of Mepco, added: "The launch of PM5 marks a transformative leap for Mepco and Saudi Arabia's paper industry. This investment expands our capacity, strengthens the national supply chain, and drives the kingdom's shift from importer to net-positive exporter, reinforcing Saudi Arabia's global competitiveness. It's a bold step that aligns with Vision 2030, accelerating economic diversification and advancing sustainability.' –
Zawya
03-03-2025
- Business
- Zawya
Saudi's Mepco expansion to double paper production
The Middle East Paper Manufacturing and Production Company (Mepco), a leading paper industry company in the region, has laid foundation for its fifth paper production line (PM5), the largest of its kind in the Middle East. The project is being managed by Al Tadweer Al Akhdar, a fully-owned subsidiary of Mepco, dedicated to advancing innovative and sustainable paper production solutions. The new production line (PM5) will double Mepco's total production capacity from 425,000 tons to 875,000 tons annually, strengthening its market position and establishing its dominance in the region. This milestone marks a new era for the company by expanding capacity while introducing a product never before produced in the region, the company said. PM5 will enable Mepco to produce high-quality, low-basis weight paper with energy-efficient technology that reduces operational costs compared to other machines. This cost-effective alternative will eliminate the need for regional buyers to rely on imports, offering a competitive, locally-produced solution. By closing the gap on the Kingdom's 30% reliance on imported containerboard, PM5 will empower Saudi Arabia to meet its own demand and become a net-positive exporter of paper products. But the impact goes beyond numbers, the company said, highlighting: • Economic Growth: PM5 is set to double Mepco's revenue and reinforce its leadership in the regional market. It will create new job opportunities, stimulate economic growth, and support local businesses by prioritizing local sourcing and strengthening the domestic supply chain, ensuring that the impact of this project extends beyond Mepco's factory walls. • Sustainability: PM5 will divert an additional 500,000 tons of paper waste from landfills every year, raising Mepco Group's total to 1 million tons of repurposed paper waste annually, a major milestone in advancing the company's circular economy efforts. Eng Faisal Alawi Haddawi, Group President of Mepco, commented: "PM5 is about the impact it brings to the whole value chain. Doubling our production capacity to 875,000 tons annually will significantly boost Mepco's revenue and create new job opportunities across the value chain. With PM5, we are introducing low-basis weight paper, a first of its kind in the region, offering superior quality and a competitive alternative to imports. Our focus remains on sustainable growth, combining innovation and operational excellence to drive both economic and environmental progress." Musab Sulaiman Al-Muhaidib, Chairman of the Board of Directors of Mepco, added: "The launch of PM5 marks a transformative leap for Mepco and Saudi Arabia's paper industry. This investment expands our capacity, strengthens the national supply chain, and drives the kingdom's shift from importer to net-positive exporter, reinforcing Saudi Arabia's global competitiveness. It's a bold step that aligns with Vision 2030, accelerating economic diversification and advancing sustainability.' Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Express Tribune
28-01-2025
- Business
- Express Tribune
MEPCO's Rs119b investment plan receives flak
Listen to article ISLAMABAD: Multan Electric Power Company (Mepco) has incurred a financial loss of Rs41.8 billion due to poor recovery of bills and higher line losses. The shocking disclosure was made during a public hearing on Mepco's proposed five-year investment plan, amounting to Rs119 billion and covering fiscal years 2025-26 to 2029-30. The hearing was held at Nepra headquarters, where the session was chaired by the chairman of the power-sector regulator. The public power utility's Rs119 billion investment plan came in for criticism as the company had failed to achieve its previous fund utilisation target. Mepco outlined plans to finance 83% of proposed projects through internal resources and 13% through debt. At the hearing, the company gave details about its financial performance, free cash flow position and challenges in meeting previous targets. Nepra highlighted that Mepco utilised only 60% of its previous investment programme, falling short of achieving transmission and distribution (T&D) loss reduction targets. Instead of restricting its T&D losses to the prescribed 11.83%, Mepco registered losses of 15.18%, which resulted in a financial hit of Rs22.6 billion. Additionally, its recovery ratio for fiscal year 2024 was reported at 97.2%, causing a loss of Rs19.2 billion. The regulator voiced concern over Mepco's technical challenges, including low-voltage losses at 132-kilovolt grid and 11kV feeders. According to data presented at the hearing, Nepra said eight transmission lines and 12 power transformers in areas such as Arifwala, Sahiwal, DG Khan, Rahim Yar Khan, Vehari and Khanewal were overloaded. Furthermore, 202 feeders were reported as overloaded, with 102 feeders suffering losses in excess of 15%. Nepra expressed its reservations about Mepco's ability to execute the proposed investment plan, given delays in previous projects, such as transmission grid upgrades, which led to a negative cost impact on consumers. As electricity demand had dropped, Nepra questioned the necessity of Rs119 billion investment and directed Mepco chief executive officer to rationalise the plan to prioritise consumer relief. It underscored the need for timely completion of approved projects from prior years, emphasising accountability and efficient resource utilisation to meet consumer expectations. Electricity rates in Pakistan have increased by 268% between November 2010 and December 2023. The average tariff rate has risen from Rs9.2 to Rs24.72 per kilowatt-hour. Keeping that in view, the Lahore Electric Supply Company (Lesco) has filed a petition with the regulator for revision in security deposit rates for consumers desiring to get new electricity connections. It has cited a significant increase in average tariff rates over the past decade. The proposed changes are aimed at better aligning security deposits with current billing trends and protecting from the risk of consumer default. Under the new proposal, security deposit rates for all consumers, excluding urban domestic users, will be set at two and a half months of average billing. For urban domestic consumers with properties up to 10 Marlas, the security deposit requirement will be raised to cover three months of billing. For properties exceeding 10 Marlas, the rates will be pegged at 1% of the land value, based on the Federal Board of Revenue rates. Lesco has also requested modification to existing rules to allow the filing of consolidated petitions for security deposit rate adjustments in tandem with its annual reviews. This approach is expected to streamline the process and ensure timely updates to deposit requirements. The proposed revisions are targeted at addressing the gap by ensuring that security deposits adequately cover potential arrears in case of payment defaults. As part of its policy under Clause 5.1.1 of the Consumer Service Manual 2021, Lesco plans to issue demand notices for security deposits at updated rates, which will be deposited by applicants in the designated bank branches.
